I'd suggest you get a HML on the matter or another investor and just buy it at 5K over the payoff.Of all cities to be messing in FC deals in the Midwest KC would be the last place since every banker around knows the number to the Regional HUD director I'd suspect.

@David Krulac   I know lending is regionalized  our portfolio lenders ( Oregon) will not generally lend to anyone who does not reside in the community..

And if the basis was low enough that the tax was high enough you still have to deal with the unique rules of sec. 1031.  

The comparable sales approach can be tough b/c sometimes I can't find comps, especially in Philly where each property and each block is its own unique and special flower.

Philadelphia is a great city/region and I have been seeing a lot of great things happening not just in the real estate market, but also with the cultural influence and infrastructure of the region. 

Yes, the Coachella Music Festivals is impacting the desert region.  

Don't let regionalism get you.  

I don't know a whole lot about my market, so if anyone else is in the Northwest PA or Eastern Ohio or Western NY region, and would like to meet up to talk real estate, Pittsburgh Pirates baseball or even just the weather, count me in. 

Every case is different, you are in a unique position to gain a lot of power over this person, you will own his home and decide his future in a way if you buy this property.

Hello Everyone I have bought my first investment property in Niagara region and am excited about the future.