With that said, sometimes sellers just want to get out of the property and are turned off by subject to deals.I would try to explain the process to him and see if he bites, playing around with favorable terms such as any DP requirement or loan duration?

The 6 month protection period seems to extend whatever agreement duration another 6 months, and 6 months alone almost seems like too much.

The only requirement is the duration of residence. 

You pay interest only payment for the duration of the loan. 

Considering duration on the market I am considering dropping my offer down to 230-240k lowest rent in the area is around 1100 highest is around 1650.

Most HELOC are variable rate with low costs which make them ideal for shorter duration loans.  

Thanks Kathy for your response, Kind we are as an investors to our tenants, that is not the topic.17 yrs as a month to month lease, My only concern is the duration with HUD assistance can be an issue or longer months or year to vacant the place.

I would encourage you to ignore complaints about transfer duration because that is uncontrollable by the company. 

Typically PM requires all the 'fees owed', therefore it'll cost you the same amount regardless  Personally, I find this clause extremely unfair.Not Renewing:  You will complete the terms/duration of the agreement but not renew. 

Say I do go the seller financing route, ultimately she will spread out the capital tax gain over the duration of the note?