Account Closed  having bought my fair share of preforeclosures.. your first rule of thumb is to basically disregard what the seller tells you because half the time they don't know.your job if you want to buy this is to get them to tell you who their lender is and get written permission to talk to the lender or the trustee handling the sale.. then contact said lender or Trustee and get a payoff quote in writing once you have that then you know if the deal works on the money side.. without it your wasting your time.

For tax purposes, our LLC is disregarded (owned by my husband & I).  

Which is true, though I had no doubt I couldn't sell this property to one of my cash buyers in the time allotted.But disregarding my contract and terms, how have my fellow BP members answered this question?

Do yourself a favor and disregard the Zillow estimate.

A single member LLC is disregarded for taxes, unless you elect special tax treatment, so thats irrelevant to the discussion.

In the end however what is "right" is subjective, disregarding legalities of course.  

I don't need this if its a SMLLC or Disregarded Entity, right?  

Matthew B.Florida courts have ruled making single member LLC's a disregarded entity in many legal proceedings.

If you did indeed decide that an LLC (not disregarded) with it's own TIN and filing it's own tax return) was appropriate then that LLC is not a foregin entity and becomes the tax payer for the property and could do a 1031 on it's own standing.  

Disregarding any extra costs, insurances, carrying costs while in foreclosure, junior liens on the DIL, etc,.......I don't care  what "% of  value", "% yield, % cost to value" you have,   $5k is just not enough margin for error.