They're not paying a title company to insure this gap, nor are they running in depth searches.The Sheriff uses the monies that pay for the properties to pay off lien holders in order.  

You'd be amazed at how some tenants stretch the meaning of a bedroom.However, if you're plan is to rent out to a Section 8 voucher holder now or in the future, measure the rooms to ensure they meet the minimum (I think its 70 sqft).

I'm a buy and holder for cash flow myself.

I would highly advise anyone seeking a reputable contractor to request pertinent information from the contractor : Copy of General Liability (you can even have it setup for you to be the Certificate Holder), Ohio Workers Compensation, City Registration where the work is being performed, warranty information, contract, defined scope of work, W-9, references client and professional).

What I'd do is to buy the property seller financed with a short balloon and then sell it to my buyer with the note holder accepting a new note from that buyer as payoff.

Now the 2 note holders are "tired" (I quote) and want out for 2/3 of the balance (44k).Numbers: - Appx balance 65k- originally financed 68.6 @ 6% for 30 yrs, 27 years left- FMV 75-85 (I am being very conservative), back when the house was sold the RE market was strong.- PI Payment is $411, current.- The property is within 45 minute drive from me.Noteholder assures the borrower doesn't miss a payment, although his credit is bad (alas the owner financing).

We typically see that done by utilizing a hard money lender along with a private lender or second lien holder for the closing costs.  

Networking face to face is very valuable.Best wishes,Keri (flipper and holder in Ypsilanti)

However what would be the end game if it went to deed auction and back to cert holder such as myself?  

I'm assuming you would need the deed holders permission?