My experience on that is I did a Common Mortgage at 70% LTV ARM NoDoc Loan and the Investor I bought it from carryed back a 2nd mortgage which resulted 100% Financing, all on paper mind you actually the Mortgage company had their own Appraiser who showed actual Comps what the property would be worth After Repairs, that is what was shown on the Loan as the purchase price (why the investor showed they will carry back).

A deed in lieu subject to a lease may violate their arms-length transaction requirements.

Its important to get the full picture,Listing Price vs compsExisting financing, bal, type of note - ARM or fixed, pmt PITI, year purchasedCondition to ARV costMotivation of SellerMost people that need alot of cash to move have no equity, and there is no profit for you as the investor for cash.The only play is lease option assignment or sub2, then rent out or RTO.

I spoke with an attorney today who owns a title company and said they could not provide title insurance for tax lien properties because it is not an "arms length" transaction.

Use arm's length lease-option documents along with the counsel of qualified professionals.

@Aaron Montague , very strong buyers w/ solid multifamily in good markets (at least Bay Area) can get a 5/1 ARM around 3.0% with a good downpayment, so there's even more "gravy" in there than those numbers, which is part of why MF is so hot right now... it's amazing!

You can find attractive cash flow but may have to struggle with crime, safety, etc.I personally wouldn't invest there because it does not fit my buy & hold criteria but am happy to provide additional thoughts on the area.

Be sure to arm yourself with what houses sell for in the area so you know if the asking price is reasonable along so you're not wasting time with unmotivated sellers.3.

Um, what if I just took a few bigger, uglier (okay maybe legally armed) guys with me to "tour" the place and walked through anyway... could I be arrested?

Those are: 3.99% 5/1 ARM 80% financed 2%/6% (condo/single-fam) 3.99% 5/1 ARM 75% financed 2%/6% (2-4 fam) Thanks in advance.