By this I mean I hope you are truly helping your Grandparents and not taking advantage of them and trying to transfer their equity into your name.

Originally posted by "swgprop":… your lender has to be willing to accept a deed in lieu of foreclosure… … you can't simply mail it to them or record it…Yes, they do need to be willing to accept it… The reason they would not accept it is if they felt they could get money out of you… Or, if there were other liens they would need to foreclosure off to clear up the title… And technically, you could just prepare a deed, record it, and mail it to them… It does not take the person that is receiving the deed to sign anything in order for title to be transferred… Hummm… Interesting, wonder how many times this has been done?

You will get a deed (trustee's deed in CA) that you will record yourself to perfect the transfer.

Not sure what their threshold is, but repairing and marketing the property is going to cost the IRS a good bit more than it would cost an investor (due to the red tape inherent in any government activity).

Lenders want as many people and assets to after as possible.You can always take out the loan in your name and then transfer the property into an LLC for protection…

That would leave me with a $20k profit, not counting closing costs, transfer tax, holding costs, etc.

I am running into red tape everywhere I turn.

On the next deal we do, I’ll finance the property but the LLC will go on the deed, thus bringing things equal.On a side note for anyone reading this: The settlement company told us today that to move the rental property into the LLC would require a 2% transfer tax and the LLC needs to be two years old.

This may work but I'm not too sure since you would be pulling your money out of an IRA and you will usually always be taxed regardless when transferring money from an IRA account. 

Time is an unknown factor, no one can say when a transfer will be discovered.