Assuming the note of the senior lienholder is a typical institutional note with a due on sale clause:Can the senior lienholder accelerate a loan when a 3rd party obtains title by means of a trustee sale of a junior lien?

On my own, I'll probably overlook a lot of things since I'm a newbie.So far, I virtually drove around the neighborhood on Google, looked at 3rd party real estate sites (Zillow, etc), and drove by three properties in the area.

I want an air tight transaction and will have an attorney review and give me their seal of approval once I feel like I have thought of every possible negative outcome for myself.So far the possible negatives I have been able to think of are below and my intended solution will follow:Dodd FrankFinding a tenant without a license (I would like to market to those who have high days on market)facing penalty for performing broker transactions without a licenseI would market, find motivated seller, let them know that I can provide them with a cash offer, they can sell with a realtor (pay the commissions, spruce up costs, holding costs, etc.) or they can sell on lease option and get someone better than a regular tenant in the home.I would use standard docs specific to my state but they would be modified to include the below:Letter of IntentI would have them sign an intent to sell where in it, it would state that the property will be purchased via an option and the option will be in the name of a land trust.it will state that I as an owner and friend will be allowed to assist in the finding of a tenant, negotiate the lease terms, and be allowed to show the property without any compensation and at my own expense.LeaseMy lease will have verbiage stating that the tenant will be responsible for repairs, and normal up keep / wear and tear associated with the property up to $250 (this is my benefit I sell to the seller so that they don't have to deal with every tiny little tenant issue.Tenant will be responsible for all utilities and they are to be in the tenants namewill be allowed to extend twice, each for a period of 12 monthsTenant needs to inform owner of extension no less than 30 days before lease expirationthere will be no mention of the option within the lease, PITI will still be owners responsibilityWaiver of Liability associated with LeaseI will have a document created stating that the owner is solely responsible for the final approval, screening and placement of a tenant and that there will not be any recourse for myselfOptionFor the consideration of $1 (with receipt from trust to the owner) the trust will have the option to purchase the property no later than 45 days after the expiration of the lease.The purchase price will be agreed upon within 5 business days before or after the date of the lease expiration and if both parties are unable to agree upon a price, the owner and trust will each get their own licensed appraiser, average the two out and split the costs.this will be an option / right of first refusal hybrid and will very clearly lay out the expectations that there will not be any seller financing, the transaction will be in all cash or if the beneficiary of the trust so decides to get a loan from a reputable / licensed lending institution they need to provide a pre qual letter within 14 calendar days of the lease expiration and mutually agree upon a closing date.I would then sell my beneficiary rights to the trust for $5k, and exit the transaction.

I recently made my first purchase on a home less than two months ago and I am currently working to convert the add-on to a third bedroom in preparation for renting next August. 

third, most cities in the US (assumption) already do that. the city does not care who goes in and out. unlike "electric or gas" they can't turn the water on an off at an instant.forth, you have tn enforce it better.

:pro - cheaper than canada real estatecon - more than 5 miles away from canadaThe "cheaper" part is not always true at the moment with the 25% premium when converting currency.

Here's a few lines from a local bank's recent SEC filings regarding notes: "During the third quarter of 2014, the Company identified problem assets and began the disposition process under the asset resolution plan... the Company transferred $11.2 million of loans held for investment to loans held for sale in anticipation of near term loan sale..."

This is a form of counter-party risk.  

Will it be possible to have more than 2 parties in a conversation?

Yuk If you only new the parties I attended when both Medical professionals (Nurses especially) and lawyers get together.