It is not as cookie cutter as 1-4 conventional and FHA rates.

Many of the investors that I have worked with have found our off market inventory perfect for 1031 investment.  

When the balance comes due they could do a 1031X into a new property of the same asset class..could also do a 1031X from the proceeds of a conventional sale.

Jack MillerProbably but there is also a significant risk because these borrowers typically do not qualify for conventional financing so the default rate jumps from what is on average 3-5 % to well over 10%.Let’s say you get an extra $10 or $20k, I have seen borrowers do a lot more damage than that to a property as well.

Since it is vacant, this would probably work best with a conventional loan, and the proceeds would be used to pay for the reno + buyout. 

Closing costs are comparable to a standard conventional loan. 

When using virtually any conventional / conforming financing, there is a Due On Transfer clause in virtually every Deed of Trust.

For conventional financing, condos need to be 'warrantable' if the condo or HOA doesn't meet those guidelines it is 'non-warrantable' and there are alternative or Non-QM (non conventional) lenders that offer financing.

The Buyer has no skin in the gameIf someone is approaching you to buy your house without a mortgage or conventional financing and are tying you into a long-term contract they better have some sort of collateral that they're putting up.

Inventory seems to sell pretty fast.