Just make sure the lease and option are correct for the state where the property is located.As it is managed by a property management company their contract with you might include a fee that you have to pay them if you set up a lease option.

We do have a pretty slick RE Attorney that works for us, so I'd hopefully assume correctly legal loop holes would not be open.

Both of your answers are correct.

Failure to operate correctly can compromised the LLC's legal standing.

Am I correct in my understanding that Mobil homes are not considered real-estate so they wouldn't be subject to capital gains?

If an area has a days on market average 60 or less a clean property priced correctly should move fast.

Correct, it's a sheriff auction.

If that is true you, homeowner buys back at 417K, and you invested 426k.I doubt I interpreted everything correctly so if you could be a little more clear.

RECPATAXMAN is correct.

Jon was correct in this aspect.After the auction, once the property is wholly owned by the lender (or auction winner); the new owner (lender in this case) can sell that property (REO) for whatever the market will bear, and keep all of the profit.