@Tim Horning correct but Ithaca already passed good cause so get ahead of it by having conversations with your town council members before their opinions on it become ossified

Asking in the correct forum will get a better response.Read the RULES!

Sometimes, properties owned by non-profits have deed restrictions, zoning conditions, or agreements tied to their use.Tax Considerations: Non-profits often hold tax-exempt status, so you’ll need to ensure that taxes are assessed correctly once ownership transfers to you.Potential Public or Internal Scrutiny: If the transaction appears to undervalue the property or is perceived as exploiting a non-profit’s resources, it could lead to reputational risks for you or the organization.

In this example the initial investment would be $50,000.So the owner of the IRA would have to pay 37% in taxes seems to negate the interest paid of 12.5% annually.Do I have this correct?

You are correct there certainly are ways for things to be done badly or illegally, but these are BAD MESSY situations before a sub-to deal would even be considered.

Am I correct in thinking that with the two units vacating soon, the property will be entirely vacant in 2 months if you also move out?

@Daniel Tanasa   Unfortunately that is not correct when it comes to mortgage debt.

I'd estimate your cash flow after you pay the loan payment would be $600-$800, which a lender that understands investment real estate should give you some credit for on your DTI.As for a bank, I have a specific lender at NBI that I would recommend.That 600-800 you are factoring in the HELOC repayment each month too, correct?  

Finding the correct contact info is hard enough, but if your pitch is that they should sell cheap now, you're misreading the market.Multifamily properties are worth significantly less now than they were just a few years ago, and asking for a further discount due to property condition would probably result in a loss, maybe not even pay off the debt.

When used correctly a HELOC allows you to do multiple deals over and over again.