Most mortgages have a clauses about not storing hazardous materials in the property, as well as about keeping the property free of municipal liens, and it sounds like this particular homeowner may have crossed that threshold.  

@Dan Nedvidek at the investor group here we use cross country mortgage

When you account for current housing such as Sol y Luna, the HUB, the District on 5th, the Cadence, INDI, Campus Crossings, and a plethora of others you are looking at a large and growing supply.

if it's less than one or two days of your income, a letter reminding them of some of the legal conditions your state requires for charging you and cross your fingers(use less than two hours of your time)....if they are going for the whole deposit, small claims court and all the preparation that entails(pictures, quotes, statements, documentation, etc), could be up to a week of your time, combined How much time will it take to get what amount of money?

They get a fair-ish rate of return with they added kicker of seeing how the sausage is made. 10% is on the lower side for a second position loan, particularity since it looks like you are cross-collateralized, but then again they get a unique educational bonus, which is hard to put a price on. 

I'm going to be following up with another realtor that a REI co-worker of mine is recommending with 25+ years of experience just to cross reference. 

I just wanted to say, hello, and join the conversation.Over the last 5 to 6 years or so, I kept crossing paths with people who owned investment properties.

I never cross that line with my Solo 401k Finances, insurance etc. you may want to talk with a tax attorney, but when it comes to the IRS Rules concerning real estate within a solo 401k or SDIRA, I stay away from grey areas and never intertwine personal and retirement assets. 

Cross your fingers and hope she finds a place quickly.

I have moved into three different places (all sight unseen, which is my fault but cross country relocations are hard all around) that needed lots of work done as soon as we moved in.