If the owner is dead, it gets more complicated.

Steve Babiak, thanks for the encouragement.One thing to remember is HUD has a very complicated process and most agents do not know everything about the system.

I was thinking it was going to be much more complicated than you describe, given all the new lending restrictions.

I worked with a colleague several years ago (pre 2008) who had a strategy for this type of investment, but it was risky and complicated.

It complicates issues of death, estate settlement, underlying mortgages, bankruptcy, foreclosures and throw tenants in there and you have a real mess.If you have a CFD and another CFD, the second is really no more than giving possession, allowing equity to be established and agreeing to buy, but it's just a contract that gets you to closing with the right to take title.

If you don't have a track record in the BBQ business, I'd suggest you dothe deal with the bank just as it sits, you will complicate matters, after you own it, do what you like and pay the rent.The mixed use should be viewed on a sq ft basis as to the use and seperately comped as you probably don't have a similar mixed use property sale (if you do that is what you go with).

Series LLC's are the new hype on the butcher block to legally complicate matters by individuals that can dream up all these structures and make them money in court.

Some Attorneys have the tendency to complicate things, specially if this is a BK attorney.

The only potential cross-over, if you will, between using 401K funds and your deriving a personal benefit that I can think of is the complicated strategy known as Rollover as Business Startup (ROBS), where you establish a C corp for your new business, and your 401K (typically money in an old 401K) can purchase the stock of that C corp.

They want to sell houses fast as well and highest and best always complicated and delays the process.