Some will still want some type of home ownership and these will head for the mobile home parks.

They may attack the validity of the lease and those issues are stated.HUD regulations apply to lease terminations when housing is subsidized.A lease survives a purchase, except when a buyer purchases a property as an owner occupied home and 30 days may be given or a lease may be brokern with 30 days when an onwer has for any reason lost their primary home and has to take the property for their residence.....all state by state determinations, but you may have such exceptions.There are also other covenants in a lease other than just paying rents and if there are other significant covenants broken a lease may be terminated.

Assuming the market stays essentially flat for the next decade, I am thinking I will look at the mortgage and determine when the house will hit 25% equity, and agree to get the owner off the note around that time (25% EQ + 6-12 months cushion).

There should already be something recorded (a deed of some sort) for the change in ownership from the foreclosed borrower to the lender shortly after the foreclosure.

Perhaps Don can correct me but I don't thing there is a strict definition as to what determines A, B or C.

I am not sure that it would be easy to transfer ownership into a LLC after the fact.

How do I determine an offer price for this property?

The total cost of ownership per year would be the business license which is $250 and the annual list of officers which is $125 plus a registered agent fee since you don't live in the state which runs roughly $100 a yr as well.

This however, would create difficulties for anyone else trying to obtain subsequent FHA financing as FHA forbids loans if a single entity has 10+% ownership in HOA complexes.

I don't know why a smart investor would collect most rents in cash and not show in tax returns since that is what the banks ask to determine value.