My fear is the lender calling the loan due because I wouldn't have the cash available to pay it off.I don’t know of many cases where a lender would allow an assumption let alone a “subject to “ situation.  

Over time, we have developed systems to handle these situations as effectively as possible.

@Paul Whitney We work with investors in your same situation often.

Hi Joshua,It really depends on your situation and your specific needs/wants.

in what I just laid out, you'd make monthly payments to the seller just like you would to a bank for 5 years, and then the remaining principal balance of the loan would be due, at which time presumably you would refinance the house into a commercial mortgage and use the proceeds to pay off the seller. 

Here in the USA you need what's called a "construction loan" and it's also very hard to find a company that will insure you if you're a newbie.

. - Roof was installed extremely poorly, they missed several decking boards that were soft, shingles installed either with extreme overhang or none, 1 ft dip on one side of the roof- Lots of other smaller issuesBUT Kenny is paying for everything - the extension on my hard money loan, the foundation inspection, subsequent repairs, the roofing redo, and other things in between.

First time buyer loan with 11% down.

Yep, we are in a similar situation.

In the area where I am in CA, prices are through the roof, as is demand, therefore; we have a lot of homes sold for shared housing situations.