He may be healthy now, but you never know what the future holds.You need to balance the stepped up equity with his potential need for medical care.Also, if he is in a vehicle accident he could loose the property in a lawsuit settlement. 

This will be in the settlement agreement.

@Glorinda Lane. learn and know your numbers on what a decent profit is.. on a scale realtors are happy when  - they are paid a fee by their investor client to show properties  - when investor actually make reasonable offers , or any offer after seeing a house with client  - when investors know their numbers  - when investors don't cry the blues about paying a commission  - when investors don't ask them how much it takes to renovate a property (this is why you know your numbers)  - when investors don't try to lower a commission at settlement because the investor miscalculated his number  - did i mention when investors know their numbers ?

FHA financing requires the least amount of cash at the settlement table and many purchasers find FHA financing more "affordable" than conventional financing that requires a 20% (or higher) down payment.On the other hand, if you are looking for the best return on your invested capital, you have to run a cash flow analysis for different downpayment amounts and compute the cash on cash return to see how much downpayment gives you the best yield on your invested capital.

There are companies that buy notes, annuities, structured settlements, oil and gas leases, etc.

A wise foreclosure attorney would negotiate a settlement that would net his client the same amount that the lender would receive if they completed the foreclosure.

Appliances by name, model, id number and agreed sale value/ Add it all up and enter the personal property as a lump sum on the settlement statement.

yikes...i feel for the agents who earned those commissions...a homebuilder filed bankruptcy in charlotte a few months back..the negotiated settlement is that they're paying off their debts at 10 cents on the dollar...they owed some small business and contractors hundreds of thousands of dollars...i know of a framer who was owed 50k...they're still in business, but paying cash on delivery now...as for the contractors and small businesses, they're screwed

If you can get past the rip off for settlement, 40K might be worth it.

A closing company will ask for a settlement payoff.