It may not even have to be a "cash out"  as long as there are legal documents showing ownership from the other parties.

Here's a SFH rehab that was beyond a full gut, I only saved about half the foundation, the party walls, and the brick facade.

To save on fees for both parties, we are planning to handle the transaction ourselves.

.: The real funny part is that there are other Landlords that will accept it.

Of course, these lenders have a different risk/reward structure than the owner financing seller who has a “built in” $50k gain.The part I don’t like about doing a wrap is the personal liability the seller maintains for the underlying loan while not having control of the assets securing the loan.  

So someone toes up a property via a purchase contract and then sells that contract to a third party.  

First red flag, that part is extremely expensive (like new unit expensive), he may be steering me to buy a new unit which is easier and more straightforward than repairing.

Focus on performing your day to day operations in a manner that will reduce the risk of claims in the first places such as hiring reputable service providers, sign contracts each time you engage a 3rd party vendor & collect insurance certificates where you are listed as additional insured from everyone who performs work on a property you own or provides a service related to a property you own.

In my experience, generally the party paying for the title insurance gets to choose the title/closing agent, unless there a reason for the other party to object. 

Perhaps the deals didn't profit, but for the most part the parties had good intentions.