The  $ to pay it off come out of the sale proceeds.  

Accounts for all equity, cashflows, and sales proceeds.

I've decided to proceed with caution and will definitely do some due diligence if I can find something worth pursuing. 

Did you end up proceeding?

The loan will be value-based proceeds, not credit-based proceeds.3) You obtain funds and close on (one, two, or three properties at a time) with owner over time, because she prefers terms.4) Be sure to make small updates over time to the properties, to increase value to the properties.

Since I haven't had to deal with a meth lab house (amazingly, because I've had hundreds of chances to have been stuck with one) I would engage with a skilled vendor and interface with the city to make sure the steps to remediation are well understood and the costs quantified before proceeding.

Are they concerned that their final bill to you will not be paid so they plan to deduct it from your rent proceeds and send you the difference once their service is terminated?

Basically, whether you decide to fix it up, or sell, getting escrow funds released is not something you have to worry about, but if you decide to fix, proceeds goes from your insurance company to your mortgage company, and they'll issue checks to your licensed GC, so "profiting" from insurance proceeds is not something that can happen "on paper."

There are plenty of people around to help you each step of the way.You can see one way to proceed at:Average Cash Flow Per Door In Phoenix Metro Areahttps://www.biggerpockets.com/forums/600/topics/58...

My question is first: what type of information would a private investor need in order to proceed?