How to Structure the Deal to Protect Your $20KIf you’re willing to cover the $20K arrears, here’s how to protect yourself:Option 1: Secure Your Funds with a Lien or Escrow AgreementUse an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.Option 2: Sub-To + Wrap While You AssumeSubject-to deal: Take over the existing loan payments before assumption approval, securing control.Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.Option 3: Negotiate a Seller Financing HybridAsk the seller to carry a small second note for the $60K equity gap at favorable terms.Use your $20K as a down payment, structured as a secured loan against the property.3.

@Marinelle Tan as far as whether an existing property can be partitioned into multiple units, feels like that may also depend on how the municipality interprets the language.

imagine building as well at 25% below market prices. not only does new construction sell at a premium to existing inventory but it also helps you enter the market more competitive. you can accelerate this massively buy having a strategy to consistently position yourself at 25% below the market. like fix and flip.

Without any cash it is unlikely unless you can find a 100% seller financed deal (they do exist, I just did one a few months ago).

., pay off their existing loan, closing costs, and/ or put some cash in their pocket, etc)There are 2 "legs" of the transaction.

These deals exist, but they require more upfront capital.

Or talked to owners of an existing one that looks like it is from the 90s to see if they would like to sell?

It basically doesn't exist outside of a D class area, and you really don't want that.

That is the city's fault really as they are the ones who rezoned every side street to RS-3 and won't upzone existing 2-4 unit properties.  

To get here you have to raise the rent $200 on the existing tenant.