I do agree with people it is easier to use transactional funding and double close.

This should be two transactions...

@Connor Swanson  Usually, with a subject to deal you can offer a higher amount than with a typical wholesale transaction. 

Order a title report, set up escrow, write out the details of how you want the transaction to go and have an attorney put together the paperwork.Another option is for you to buy the house for the amount owed with a carry back from him of the equity you want him to have.

Give the tenant a safe comfortable place to live and fix things promptly .

I always tell people....I do more work for free than any other job out there, because we don't get paid unless there is a transaction that takes place.  

yes …. you can do it that way you can do a participation note... secured or unsecured.. the main thing is to have a conversation with the first lender let them know our a principal in the transaction and if anything happens you have the right to cure and take over...  

Most buyers will expect a title or escrow company to handle the transaction.

The Operating Agreement must contain language sufficient to address IRA-related issues concerning Prohibited Transactions (26 USC 4975), The Plan Asset Rules, the allowance of subsequent or additional Capital Contributions and Unrelated Business Income Tax (including language that ensures that the Manager of the LLC will prepare and file all necessary tax forms with the appropriate taxing authorities, Federal, State and local).

The ARV should be around $160k to be safe and needs around $25k in repairs.