Then the title company discovered there's a judgement on this person and proceed with paying back the judgement, the principal with interest was about $56k.

Not many lenders out there allowing a second mortgage position behind their first position on a non-performing asset or even a performing asset because if the borrower defaults on the second position then the holder of the second can start foreclosure proceedings on the property and it gets very messy for the the first position holder.

My note investing goals;Buy lowNon-performingHold and collect mortgage payments Resale to an investor looking for performing note Address: 2124 Tullis Dr Montgomery, AL 36111Asking: $42kLayout: 3/1, single family homeArea: CLien position: 1st UPB: $80,968.80Monthly mortgage payments: $719.78Sale comps: $62k Rental comps: $600 per month4 months behind on mortgage paymentsTaxes: $218/year (actual, from county website)Insurance: $217/yr (based on a formula for a home in the 50k-60k range)Here are my thoughts on how to underwrite it: Offer: $28k Fair Market Value: $62k Modified mortgage payments: $650 monthlyPayment upfront: $5kI came up with the 5k based on lawyer fees, BPO, tax for the yr, insurance for the year and servicer fees.

My parents are thinking of buying and adding to their portfolio and I would take the proceeds and 1031 exchanging into some more properties. 

its the title company that will not insure it to you new buyer.. or lender.you can rent it and own it or live in it..  

The monthly numbers:Gross Rent = $1100Taxes & Insurance = ($156)Vacancy = ($92)Repairs = ($77)Trash, Lawn/Snow, Inspection Fees = ($103)PM Fees = ($161) based on 80% first month, 8% monthlyWater = ($46)Capex = ($110)Total Cashflow = $355/mo, $177/doorROI = 9.5%.  

I own a home in Beavercreek and I'll be selling it when I have to move in a half a year because the rents would barely cover the mortgage/taxes/insurance.

If there are liens, back taxes, etc... the title company will identify what the issues are and these issues can be USUALLY be satisfied by the proceeds from the sale of the property if there is enough cash to cover everything.

Best thing to do is hire a licensed and insured plumbing contractor who knows and understands the local building codes and ordinances to perform the work properly.

Did you purchase buyer's title insurance?