@Steven Lapp - Proceed with caution and vet people and companies for for managing your real estate assets as strictly as you would if hiring a financial planner to turn over your $250K stock portfolio to. 

The primary objective of this particular system is not the acquisition of the real estate, per se, but to become the record title owner in order to apply for the surplus, referred to as excess proceeds in the post tax sale world.I would not deprive BP members the privilege of investing $1,000 of their own money in order to learn, implement and perfect their own system, however here are the basics:1.

The proceeds from the 1st deal have put me in the green for this business endeavor!

Before we get into that, I directly address his condescending tone and lack of insight, I'm then cut off in which he mentions "I don't believe you make money in real estate" and proceeds to hang up the phone. 

After closing costs our proceeds were $47,071.24 for a profit of $19,341.98 or an ROI before taxes of nearly 69.8%.

The former tenant then gets a "cease and desist letter" to send to them and by law they have to stop.A judgment company will usually split the proceeds 50/50.

It doesn't sound like you will have much room for profit margin in the area the house is located in, so I would really make sure you have your costs nailed down before proceeding with this project. 

I know I should have asked more probing questions I figured I would go to the home and check things out just for practice and experience.Anyone have any suggestions as to how to proceed once I get to the home?

The stipulations are that I pay the mortgage company directly, once I'm paid back from the proceeds of the rents then we split the proceeds.  

In these situations where the seller has listed the property with an agent they were planning on paying them with the proceeds from the sale.If you are not putting down much it might not cover all the costs they have to pay out.The seller would want more down in this instance.Usually on owner finance the attorney draws up a deed-in-lieu provision as well as a foreclosure clause if the owner doesn't pay and isn't cooperating.The seller might require reserves on owner finance as well as a personal guarantee on the loan.Could make it non-recourse but leave a "bad boy clause" in there to protect the seller.