All channels can work, but some do pan out more reliably than others over the long haul.You’re prety likely eager to free up that mortgage.. and who could blame you?

My client had some things come up that prevented her from executing, but these were some of the options I had put together for her, a regional bank, a regional CU, and a national bank.Reminder that NOI sizes CRE debt, and that's often what determines the down payment requirement, not anything to do with the client or particular lender, just the property itself.

I have enough saved for FHA loan down payment on a duplex up to 500k. 

Have proof on hand (easy enough to find) online of the missed tax payments and any documentation that supports that he specifically didn't pay his taxes.Probably a simply mistake on his part, but now if he wants to develop on it, he either has to land lease it from you or buy it back.I'm not sure how the whole tax deed thing works, so that would be something you have to figure out between the two of you.

In retrospect this $200 was never mentioned in the original pitch but I later discovered that even the idea of one time payment and forever help until you make the $1M profit and split with them is not true.

This would be an opportunity to discuss deferred payments and a 5 year balloon. 

Right now, you have to be able to source off market properties or be willing to force cash flow with large down payments. 

My plan was to keep the condo as my residence, but after a year, refinance to fund a down payment on a multi-family property, either out of state or in the surrounding NY area.

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

Add-on:  I do like that I can automate my late fees, no partial payments, etc.