First off, the entire deal you outlined, never was legal from the start, so this whole thing began horribly and missing due diligence phase from start.

So, it will be taxed at your marginal rate and subject to "all" taxes such as self-employment tax. 

Hi fellow investors! I've got a potential sub-to deal in the works and need a recommendation on an attorney to help set up everything correctly. Also could use an agent who's written up a sub-to contract! Anybody have...

I’m currently grappling with which path / options to take and would love all your thoughts – below I have outlined some context of my situation and options.Context:- Currently own 2 properties – my SFH (which I don’t want to move out of) and a condo that is rented (currently to family members which makes it easier)- Have 150k cash + 150k available from a HELOC at 3.75% -- have more available but this is all I want to allocate to REI right now (I say this so you know I’m not being super stretched investing the 300k)- I’m open to investing locally or remotely within the US – we live on the WC approx. 3hrs from SF- My wife and I work demanding 9-5 jobs – we are open and willing to spend material time on this but cannot make it our full-time roles for at least a couple more yearsOptions – I have outlined these in my perceived level of difficulty, would also love you thoughts on that 1.

He can break the lease whenever, the key is what are the consequences of him doing so as outlined in the lease? 

Here's a few of my observations on the subject:*just bc markets have rallied hard doesn't mean they eventually have to crash, they could move sideways for a long time. 

Your contract effectively gives you the Right to Purchase the subject property. 

You should check with a title attorney to be sure as laws are always subject to change, however, I believe this first right of refusal only applies to Baltimore City, not the County: Under Code §6-1, before title to any single-family residential rental property is voluntarily transferred, the tenant of that property shall have the opportunity to purchase the property on terms considered reasonable in the residential real estate market.I would advise him to give the tenants notice, move them out, take care of deferred maintenance, paint/carpet and sell the properties vacant.

An additional question: In the contract we recieved, it states: "Seller will provide estoppel certificates as a required delivery item prior to the close of escrow and estoppels will not be subject to any buyer contingency approval.

When I learn how to wholesale it was for free and clear homes or doing subject 2 for mortgage.