Land trusts provide little, if any asset protection and are probably not valid in Michigan.

This would also validate those "basement bedrooms".3rd, you need a partner to provide the cash up front. 

If they provide that, and you can validate it as legit, I think you have to proceed. 

Thanks BP community:Earlier this year I found a 7 unit converted house, submetered gas and water, fully rented, stable market just received marijuana plant with 130 jobs, and have a 72-year-old motivated seller who is unloading some of his properties as his children don't want them.

I call on experienced NYC investor @Llewelyn A. to give this any validity with local laws.Take over the house subject-to his first mortgage.

I had a brand new gas hot air furnace installed on one unit and that thing could bake a turkey if you left it on the counter.

@Jason DiClemente you put it well and I don't dispute the general validity of that central point for a given property.  

Can possible sub divide lot.over 5,000 sqft all brickrehab estimate- exterior 40,000... interior 20,000 per unit x 4= 80,000Total Rehab $120,000Seller Asking PRICE $175,000Present mortgage $125,000 @ 7.2% 30 year term (was originally $152,000 in 2004)No second liens2 units are occupied (don't see how with all the deferred maintenance) and supposedly collecting rents $600 eachThey originally offered a "land contract" at $175,000City assessment- based on land and structure $203,000All units are metered separately- electricity, gas, water, trash etc...The good news....pro forma base upon what I know about that area.

This refiled lien is now behind all valid existing liens and not an extension of the previous IRS lien.The IRS has gotten much more competent in evaluating collateral, resulting in a much tougher stance regarding offers to compromise. 

There are pros and cons, and lots of valid opinions.