Joe Mullis is outstanding!

Do not spend another dime on this property until that question is answered.It could be something as simple as an outstanding fine for an overgrown lawn or as disastrous as environmental contamination leaching into a public water supply.  

For me to BRRRR it over flipping it, it would have to have outstanding property appreciation and/or rent appreciation outlook.  

Don't assume that a former tenant that couldn't pay the rent, actually has an estate that can pay off any outstanding debts.

BTW Joseph- a 1.5 return on signs is outstanding!

If you do go this route you will want to get a stated payoff for the release of each property secured, as a percentage of the principal outstanding.

Just thinking that the LTV is unlikely to be 30% based on amount outstanding and state of the unitThanks

One of the unusual things was there was a previous HELOC for $250K (this is a 3rd loan) from a few years earlier than the first mortgage that was still showing outstanding.

Outstanding!!!

Maybe agree to provide this (non-reference) reference if he agrees to move out on X date in broom clean condition and you also won't go after him for outstanding rent in court.