@Daniel M Gibson sticking to fundamentals and your "gut" is always the best course.Unlike 99% of the investors on this site, my take is that investing for cash flow is a bad idea...it creates a jaundiced view of how things work...meaning that investing is about controlling assets as wisely as possible...not immediate cash flow.I use seller carried loans routinely because I'm in for the long haul (and I don't need rental income to survive)...as long as the purchase price makes sense, I could care less about income...the concept is debt paydown and future equity.

@Patryk Sommer I'm always weary of condo investments because you have little control of capital expenses.

This city is rent controlled.

Plus, you can pretty much expect that if Prop 10 does pass, it's going to be a loonnngggg time before we're going to have serious rent control in our area. 

Her lease contract states the landlord is responsible for termite and rodent control.

OOooooh, so there is risk if say I am paying his loan and have control of the house and he for whatever reason loses the loan?

With an HOA you are dependent on them to fix/maintain stuff that is out of your control.

If the deed was good yesterday, it is the same deed today--the lender is getting PRECISELY the same title they had yesterday, last week, and last year.  

Being the bank gives numerous exit strategies as you control the asset. 

It all seemed very shady and then I began thinking to myself.... what controls are in place to stop these inspectors from deciding an area is "not accessible" and pointing at "flaking paint" to drum up business for their friends and themselves?