Armed with this information, we were able to negotiate an amazingly low purchase price of $4,500 for the 2nd mortgage.

Anyway,  since you invest out of state, would be willing to arm your PM just to collect rent?

In Georgia all transaction must have happened like 3 years ago and must not be in arms reach so you can't sale to mother or brother etc.

If it explicitly reverts to month to month you can cash the check and give them an official 30 days notice to leave  unless they sign.

I’m giving it another shot and optimistic I can get something going this time armed with better tools.Right now, I’m working on defining my goals, the market and types of property I’d like to invest in, and a personal budget for my investing capital.  

., then it is not their primary residence and the sale would not be covered by the tax exemption available under Section 121 Sale Of Primary Residence of the Internal Revenue Code.If there was never a lease between the parents and the daughter, reflecting arms-length business negotiations and fair market terms and actual monthly payments, then the property in not "investment property" under Section 1031 Like Kind Exchange of the Internal Revenue Code.If the property is sold now, it will be treated similarly to a vacation home, the profit will be subject to Long Term Capital Gains, probably at 15%, but it is impossible to speculate without looking at the parents' financials.The parents can begin renting the property right now and after a period of time, preferable a year and a few months, the property could be sold and the tax on the capital gains deferred if all of the net sales proceeds are used to purchase a like kind Replacement Property.If you go the rental route, sit down an work out a plan before you start.  

They have a 7 year arm that seems to be attractive for my client.

looking for some opinions on an idea. im checking on a few arms. one that i like particular is a 30 with 10% down at 4.64 apr. 5 year lock ins with no more than 2% change with each change.  

I don't have what I wrote down in front of me, but I think it was 5/20 ARM @ 4.75% interest. 

I am trying to sell the property now because of an awful mortgage (80/20 ARM with a 15 yr balloon payment) that we cannot rid ourselves of.