On the other hand, most commercial insurance companies have employees therefore they know what it takes, plus, it is their job to explain everything to you on what you are buying and what you need to prepare/do in case of worst case scenarios (for workman's comp, an audit or injury or death).

It sounds like you can demonstrate that she did have the intent to hold for rental/investment purposes but that the CC&R and/or HOA rules do not permit the rental of the unit, which you can easily prove to an auditor.

Any possibility we could bargain with the county auditor for a payment plan and structure a contract of deed or land contract?...

I am also employeed by a government agency as an accountant/auditor, a field some day will like to leave behind :).

This flip could net me between $20 and $140k which would be a nice start.My background:I'm an auditor for a public accounting firm and have worked for a contracting company assisting in project management for rehab of buildings exceeding $6 million.

My local banks like that far more than do cash out refi's on every transaction (which can raise red flags with their auditors even today).So even if the CF was 8% AND if they were to get rid of that stupid rule, it still wouldn't make sense for someone like me.

@Linda Weygant, I'm an auditor and I'm vaguely familiar with taxes.

But even after extensive Auditor website searches and white page look ups I'm at a stand still.How will this benefit the both of us?

Ok, so maybe (maybe) we get away with the regulators breathing down our necks, we are subject to internal/external auditors reviewing the violation of our policies and procedures for disclosing information about a loan to a person not on the loan.

Also remember there are many new and revised laws since the passage of the Dodd-Frank Act.Even as I write this, one of our auditors is going through a pile of Contract for Deed loans that a community owner wants to sell.