So, even if the loan amount is the same, and even if the interest rate is the same, with the terms mirroring the underlying mortgage, the seller will have (1) recourse to foreclose if the buyer stops paying (2) with payments going directly to the seller who then sends payment to the underlying lender the seller will know if and when the buyer has not made a payment, in which case they can choose to make the underlying mortgage payment and proceed to foreclosure, (3) the seller’s legal position is enhanced since he holds a debt security interest in the property (4) the seller may be able to wrap a higher amount than the underlying note and or a higher interest rate and (5) the seller’s credit position may be enhanced since he has the asset of the wrap note offsetting the underlying debt.  

I am excited to have grown to the point of tackling this big scary goal, and can't wait to meet some of you folks.

NC is a great market for your goals, however it will be challenging to find inventory that has much cash flow; many people who toss money into multifamily here do it to avoid the tax bill + take the 10 year runway of growth.How much SHF RE do you currently have?

There are also other strategies that can work better currently, depending on what your goals are. 

This will depend on what kind of loan you choose to proceed with.

Go back and visit your goals-is this what you wanted?

In other words, two financing agreements "wrapped" together.But the goal here would be for the 2nd buyer to close all-cash (to skip the financing process), would that still work? 

Insurance companies want to fix it the cheapest way possible, and their goal is to minimize out-of-pocket expenses like this one.  

Competition remains strong but it doesn't mean your goal is impossible to reach.

Just make sure to run the numbers to ensure the rehab costs align with your cash flow goals for the rental.