This can be an excellent strategy but not if you miss an outstanding liability or judgment in one or more of the LLCs.

If math is correct, it's an outstanding deal!

But that is another issue...The only properties I have bid on (and lost so far) are those that I have verified through title search to have NO outstanding first trust or other secured liens.

The standard thing that happens is that whatever is left of that $40k outstanding amount owed goes to pay off that debt, so the house can be delivered free and clear of clouds on title as specified in the purchase contract.If the buyer is an idiot, or the market is so hot that the buyers are forced to behave like they are, then you do sometimes see buyers take over the solar lease or solar loan (PACE loans are common in California) or solar whatever it was. 

So far I am planning on finding out from the City what code violations are outstanding and any liens that are on it, then hopefully inspecting it for myself and determine a price point.

If the company were to go under while you had an outstanding claim, I believe your state would have a guarantee to cover the costs.

@Maria King My Cabins are 23 mins out of PF and 37mins out of Gatlinburg and do outstandingly great. 

I'm sorry to hear about the situation you are going through with your tenants and property manager, I had a similar issue recently with one of my rentals.It is clear to me that a good property manager would benefit you tremendously so I wanted to let you know who I use and highly recommend.His name is Tyrell Anderson and he has been outstanding in serving my property management needs.

I've got a bit outstanding already with them, so I needed board approval.  

I have had some horrible and some outstanding section 8 rentals just like in my retail rentals.