Our first house out here we lost after 2 months when the second lien holder wanted 5 times more than usual.My point is, it depends.

If something went bad it will likely go to tax sale or one of the lien holders will foreclose.

If your contract for deed is written the way mine are, your contract for deed may be assumable upon my written approval by the note holder of the new borrower.

The deal sank after we found a judgment against the property that we could not find the original judgment holder to negotiate the payment and there were some easement issues that were kind of complicated.

The Mortgagee will be paid what is due from the sale proceeds and any overage from that amount will be dispersed to junior lien holders then the borrower.

I would start by having them talk to the mortgage holder.

Would you be splitting the lot for the 2nd 4 unit property and paying off the holder of the note?

You can still find some decent deals there if you are a long term holder and you stay under 100 units but that will make property management more expensive.You can go north from Seattle and caps are a little better but if you go too far north you begin to compete with Canadian investors coming south and will bid up anything with a broker's six cap because it's twice what they can get in Vancouver where caps are in the threes.In Seattle prices have crossed the Line of Doom (existing properties selling above replacement cost) and we're being pitched a lot of development deals.

However, as we are all aware the transfer of title will trigger the ability of the note holder to accelerate the note and demand payment in full, although this is a relatively rare occurance.

I suggest not letting sellers or lien holders tell you what the story is.