As an incentive to transact with a seller, if the seller had say a 7.0% interest rate they offered the assumption of their loan while new originations in the market were at 12.0% (yea, the 1980's were not interest rate friendly) This had two fundamental consequences, one was lenders were loosing control of the party responsible for payments.

Say A sells a property to B subject to a $100K loan.

I'd just hate to not be able to cash out a private lender say a year or so down the road or what ever was agreed upon.

There are tons of houses out there under 100K in most areas of the country.So i guess question 2 is, could i get a secured line of credit -- say a 50 to 100K line of credit, based on 10K put down as securing collateral -- and use it to purchase outright a 30K piece of property ... assuming one can not get a mortgage for 30k.Also, that would probably avoid lots of nasty loan origination fees that would through the cash on cash return out of wack for such a small loan, anyhow.Is this doable?

It's really not as big a deal as say, a meth house.

Or hire a management Company for say a year to avoif getting burned out?

(And don't say a shrink!

In your shoes, I would tell the tenant that I am willing to give, say, a weeks free rent.

Every bank is different and maybe they just are more comfortable with bridge loans then say a construction loan or an interest only 1 year note a lot of them are all the same thing just make sure you are up front and honest with the bank on what your plan is, make sure you have enough for rehab and you should be good.

I've always been interested in owning vacation property up there too, so I'm interested to see what people on BP have to say as well.