I know a lot of property management companies out there will pay a referral fee to the realtors that send them positive leads.This is great as long as the PM company is reliable.When working with REIs, your word is your bond, and you need to vet the PM companies before sending referrals their way.Also, you probably want to make sure the PM company sends the lead back to you if they decide to sell.Am I missing anything?

The seller isn't the bad guy man, he is naturally scared as anyone in his position would be.

                                     Negotiate from a Position of StrengthThe old “Poor Mouthing the Offer” which some buyer agents still recommend is an outdated & flawed strategy, especiallyin a seller’s market.

Without the documents, I cannot tell if there was a recording error, if the second lien stayed in second position, or what exactly happened?

Thomas Marshall I am sure it is, the challenge will be what position are you in 1st or 2nd and if your 1st then getting s lender to be in 2nd with 100% equity will not happen and then if your in 2nd your money is at high risk.If your looking to be passive either be a hard money lender or invest in mortgage notes.

Does anyone see any positives with this deal?

Numbers above don’t include cash flow negative but income positive Minnesota lake front future retirement home with $440/mo hoa and 15 year loan.

Also if you depreciated the property you sold there will be taxes on the amount you depreciated.That being said I am a huge fan of paying for homes in cash and having a positive cash flow right away, but not if you give away decades of profit in taxes.If it were me, I would look for a multifamily home/apartment for the amount of your last loan + profit that gives you a good cash flow in a broad geographical location.

Rule of thumb is you want to keep that ratio below 35% for a positive impact on your FICO.  

We each have our position and no debate will sway the other side.