You need a contract he won't sell it for essentially nothing if that is what you were implying by only paying what is left on his mortgage. 

@Armin NazariniaI see several flaws in your proposal:You said "then sell the property back to myself", which implies you sell the property to your 401k, is that correct?

Originally posted by @Roy Cleeves:6% is popular in Ontario what does the number or rate imply?

The Clerk of Court does not express or imply as to the warranty, condition, marketability, existing or potential uses, title, outstanding liens, mortgages or other encumbrances, zoning regulations or laws that may affect current or future uses of the property, or regarding any structures or fixtures thereon offered for sale by the Clerk.

@John McNamara I don't know for sure my guess would be that they had an implied month to month lease and not the full written lease because that could be harder to prove verbal agreement. 

This implies a much broader service.

@Alexander Felice I wasnt implying that you were the roadblock :-) the OP mentioned personal DTI as a potential problem, and that shouldn't stop him from moving forward.

Im sorry @redgy saint-germain even though i live in new bedford the property im investing in is not in new bedford so yes the price points may seem a lil high how ever im not sure if i Implied the flip is in new bedford I don't know if it's my fault and I said that or if maybe you've assumed that because I live in New Bedford  how ever that's not where the property is I'm investing in a diffrent area altogether either way my apologies because that's not the case of course I would most certainly do my due diligence before investing in a property And the last thing I wanna do is waste anyone's time Especially someone who's loaning us money or even my realtor who works hard for hers i guess all in all what i was asking for when i had put this post up was help finding a good lender which since then we have found one so thank you  I guess I just didn't really express myself correctly so my apologies

However, that is always made exceedingly clear before the deal begins so there are no misunderstandings.So without knowing what was said, implied, or expected with your friend.

As already implied I would look very hard at the tax code I am sure they address this situation.