The information here is truly outstanding (and often entertaining)!

One individual had a $95K LOC against the property - the bubble burst and suddenly he does not have the LOC and the bank wanted the funds outstanding paid back immediately.

There may be late fees or other charges included in payments in arrears so the you may not be able to subtract the payments outstanding to the balance when payments stopped and see todays balance.If the balance due is given as an estimated payoff, the amounts in arrears are already included.

You may be able to push that saying you may not close with outstanding issues, but I'd pick that battle carefully, you might just release the tenants from the lease if they wanted out with a "Sorry that guy messed over you" letter.

I've also done as much research on any potential road blocks like outstanding liens, back taxes, inheritance issues, etc.

Hi jermaine hereSounds like that is a new tenant (couple of months) we do not have any of that from new tenants thay are trying to train you to accept there crap, you as the landlord need to train them on what is accepted and what is not.As for the check we do not send money back to people that have outstanding balance,

"All Payments made by the Tenant to the Landlord shall be applied as follows; FIRST to any and all outstanding balances due and owing and SECOND, only when any and all outstanding balances have been satisfied, will payments be applied to current rent."

Even in the event I can't make her 100% whole with the cashout refi, I plan on taking out a HELOC for some improvements, which I plan to do with the equity in my primary, and there would be sufficient $ there to fill in any outstanding debt with my sister.Her concern was the ambiguity of the 5 year term vs my intention of paying her back within a year, at most.

Prior to the sale I want to make an offer to the current owners for the price of the outstanding debt and property taxes.

Just take simple steps like paying off anything outstanding on your CC, and get below your maximums.