Our biggest concern is sliding in under the first-time homeowner credit which ends soon and I think she'll help with that, certainly.

To be fair - I bought his first course at a Larry Goins Investorpalooza - It came with an offer for help via e-mail - he wasn't much help, so I wasn't happy with him, and subsequently left a bad taste in my mouth.

In short, just seeing 12 months of expectations being met really eased her (us) into making subsequent purchases.  

Any way to get a copy of the slides? 

Some tenants might object to the development work and the subsequent mini-storage as much as losing the use of the land.

well your subsequent description of the deal is far different then your original.now I understand it as a tear down.. lot value 50 to 60k  Minus what ever you have to pay to tear down  ( our area 15 to 25k if there is any asbesto's or lead that could double.)so it looks like the value proposition is not a heck of a lot more than the 10k your talking about.your fist post made it sound like a fixer worth north of 100k that U were going to snag for 10k.. big difference.

not an expert there on this issue but I would bet 97% the loan survives and your taking title sub tooand the first lender once they get a relief of stay will then forclose and wipe you out.where I see folks use these HOA deals is simply to rip rents.. get into title because as we know you cannot rent something you do not have title to.. keep the rent for as long as you have ownership until your wiped out.I have actually seen a few were the property was free and clear and the owner just left stopped paying the HOA someone bid on the HOA and owns it free and clear.. client of mine did that on two townhouses in CA... unfortunately there was an issue with the subterranean drainage and after about 10 years of renting them out they slide down the hill and were condemned but I am pretty sure it was still a profit for him. 

Will my first mortgage foreclosure take priority and all subsequent liens (including the second mortgage) get wiped out?  

If you are putting up a wall you likely need a permit but you will be surprised at how many things you need a permit for that the town tends to not enforce or let you slide on.

As an example, if a building was purchased at $35,000 and rehabbed and subsequently sold for $85,000, do they just use the $85,000 purchase price or will they assess based on the local market and comparables?