Costs will be higher with this route, but it would accomplish your design to not have any one individual "on the hook" for non-performance of the loan.However, I'd encourage you to either be comfortable with the liability in the deal or to not do the deal.  

If you're really building an in-depth list, get back to me again and I'll update you on their(Isbell) performance.

Am I able to put a contingency on my assignment contract saying I can back out if my buyer doesn't perform? 

@Kevin Sobilo The property is in a C+ B- area and we have multiple properties performing well in general area.

I has this happen to me and filed a specific performance suit against the seller.

THis way you won't have to 4close if he doesn't perform. 

You can perform a search of cash sales in the area where you are buying (through the MLS for example - that would not cost you anything, just ask a real estate agent) and contact these cash buyers and see if they would be interested in partnering with you or funding your deal.

How's it performing as a vacation rental?

Note that you can perform roth conversations over time (year over year), minimizing your taxable liabilities where possible.

If the first (mortgage) is not in the hands of a major bank that reports, then it will be hard to find out if the first is performing (as Dion was saying).