The “insurance” is a refi, assuming the buyer is current on everything, you have to use their title company to close the loan, lender’s title insurance and other fees and likely caveats.EXCATLY Wayne:Coverage CriteriaIn order to obtain coverage protecting the Buyer from exercising of the Mortgage’s “Due On Sale” Clause through Equity Assurance, LLC for the existing unsatisfied mortgage in the transaction the following must be met:Mortgage must be current or brought current at the time of closing.All property tax (county, city, state, school, MUD, etc.) must be current or brought current at the time of closing.Property insurance must be current or brought current at the time of closing.Home Owners Associate (HOA) dues must be current or brought current at the time of closing.Closing must take place at Paradise Settlement Services, LLC d/b/a PSS Title.Title Insurance must be purchased from Paradise Settlement Services, LLC d/b/a PSS Title.From there website.. this is simply a refi and I suspect your paying up front for a refi that may never happen.nice money making gig.. 

She is tired of running the laundry mat. 2: She doesn't want capital gains by selling.Your offer should be to either do seller financing for a monthly amount that suits both of you and a term that is longer than their expected lifetime.Or, you could do a renewable lease option, which allows for you to exercise the option upon her death at which time her heirs will inherit the property tax free and you can pay them the option amount. 

(http://www.loopnet.com/Listing/20404304/415-e-Magn...)This is more of an academic exercise as I am currently buying 3/2 SFRs, but I want to think about how to value multi-unit apartment buildings.

That might give you the option of exercising your mortgage contingency.You DO have a mortgage contingency, right?

Equity: The addition will enhance the value of your home.

One person did say, sell him an option for the lower price and let him exercise it. 

My advice would be to focus on matching assets to your personality and interests...in the long run, owning super risky properties is simply not worth it...and setting numbers for minimum return on investment is an arbitrary exercise. 

She stated that the role of politicians was to be civil servants and enhance the lives of their constituents. 

Another thing you can do is drop everything and go exercise.

How many owners of foreclosed home do you think, exercise that right?