With regards to our flipping model, we usually stick to our model of purchasing project houses under $180k but the market had been extremely competitive and supply was limited; it also seemed like a great deal on paper so we ended up closing on it for $212,750 (all in).

I wanted to buy in Lafayette because I know the area extremely well and have good ideas of where there is good potential for growth. 

Does construction and then nothing thereafter count as active enough to satisfy?

Thanks so much for the reply and honesty Benden Mitchum, it's extremely helpful to hear.

That could be you buying the home from the seller and the proceeds being used (at closing) to satisfy the debts or that could be negotiating a reduced payment to the debtors and "assuming" title in exchange for satisfying those debts.But . . . if you can't negotiate this with the seller, then the legal process of taking a home from someone is a foreclosure. 

The HOA will charge you $300 per month for non-compliant rentals, and the HOA is extremely strict.

Apparently, it's extremely difficult to evict a person even if I am living in the property.

Correct Mike, because of growing costs for new construction, all homes under $300K are in extreme demand.

I could go on regarding insurance, taxes, etc.Partnerships are extremely hard to execute well, and there is nearly always a better way to structure things to give all parties the things they want without the entanglements they don't.Just a thought...

An extreme but good example in the above post.