Let’s break this down:The Pros and Cons of SellingPros:Unlock Significant Equity: Selling would give you $500K in cash (less transaction costs), which you could reinvest in multiple properties in higher cash-flow markets.

@Allison Littman To structure the purchase creatively, you could split the $600k transaction into a $400k purchase agreement and a $200k charitable donation to the seller’s tax-exempt organization.

It's much easier to set things up right than to have to transition them later when you have multiple properties and many, many transactions.

Contact the Title Company; it is their responsibility to 'settle' the transaction at closing.

This brings me to now, I've taken this approach and have used my own money in lending, but am also bringing in friends and family to take part in these transactions so they can earn way better returns than with CD's.

@Rafael Valdor some advice when screening PMCs-----------------------------------------------------------------------------------------------------Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

Some gurus tell practicioners of sub-to to hide transaction from the lender by saying the lender doesn't care as long as the payments are being made.

@Ankit Lodha, as others have pointed out, this sounds like a transaction you should be able to get done.

Any transaction done with little or no equity contribution is most probably (there may be a few exceptions) in danger of “blowing up” from over leverage and insufficient equity cushion.  

I usually run several CMAs, with different criterial, and of course compare tax appraisal value with a wholesale price, add 5% as a fee to a transaction, in some cases.