@Karla Slyngstad A Delaware Statutory Trust qualifies for an exchange, and most have debt at or near 50%.In your situation, and speaking in general terms, a $400k equity investment would include a $400k debt position, satisfying $800k in an exchange.

And, if they are still unhappy, give them the option of moving out, with 30 days notice. 

The other issue is that I need the seller to be in second position and most banks dont seem to like that if the second position is the seller.

Anything with extensive rehab needed to re position property up to 10M.

@Alex Young Depending on what the contract says, talk to an attorney in your state and ask them about sending a notice to the Seller saying their in default and you intend to sue them for specific performance to go through with the deal.

Again, a word of caution, when you finance the downpayment with a HELOC, you are putting yourself in a highly leveraged position that may exceed the risk threshold for some people.

@Dan HeuscheleI use month to month as well but I have simply not renewed, with proper notice.

Financing was a challenge but we got lucky with the right family member in the right position at the time.

(long story, not very interesting read) It's a balloon at sale or maturity of the first loan.Anyway, I plan on recording it in second position.

how do I determine which market to begin my real estate investing strategy - seeking small multi family units with positive cash flow of $100/unit of more