This is a single-member special purpose LLC, must be set up in a certain way to be IRS-compliant.

You must have 3 comps to be compliant with appraisal regulations.

The local boards have leases created by attorneys that are compliant with the Residential Tenant Landlord Ordnances. 

You acquire the NPN at 30-50% of the collateral (house) value and attempt to either get the buyer back on track in order to flip the loan as a performing loan or foreclosure if the borrower is non-compliant.

If so, then have them confirm that you can reconstruct the quad from the foundation up and remain compliant without having to rezone.

Different rules apply to refinancing as costs can be covered by a note holder or originator, offering much better terms down the road at a very low cost usually motivates borrowers to refinance so a balloon is not really needed in many cases.What ever is done on the more creative side, it's clear that it needs to conform to prudent lending practices, be consumer oriented and compliant, but it's possible to do business, it just needs to be restructured from what has been done in the past.I'd say too, beware of gurus jumping on such ploys, don't even think of going there. :)

A recent study showed that less than 10% of the seller financiers in the manufactured housing industry were actually legal and compliant.

Seller financing can be a concern if not originated compliant with SAFE Act state and federal level guides.

I get it though, when a licensed and compliant servicer doesn't want to service the loan for lack of content - it must be a good idea to do it yourself - you know - absent all that compliance and regulation "stuff".  

Same gig: rent to own, owner finance.  3 per yr per me, my wife, IRAs,  using a licensed mortgage loan originator, qualifying to 43% DTI,,, all dodd frank compliant.