The lender then gets the property, usually in beat-up condition, and subject to all existing liens and lawsuits.

Depending on the market, even use language leaving habitual damage being subject to eviction.

The seller is onboard for subject to.

@Jessie RandolphOf course, if you take a distribution from your retirement account you will have to pay the taxes and (likely) penalties.There are possible alternatives which would allow to you use these funds without paying taxes or penalties.First, you may wish to consider transferring the funds to a self-directed 401k or IRA which will allow you to invest in real estate without incurring taxes or penalties.

Does anyone have a guide on this subject?

Think, subject-to, master lease, seller financing etc.

While the investment was made last year in May, we have not received any distributions as of yet (looks like net rental income was a loss).

I would buy the homes subject to the existing financing.

If you are subject to this, the expense can run into the multi-thousands.

This is another person selling information and training that can easily be acquired for free.I would not recommend paying for information.This type of paid training (in my opinion) is for lazy people who want to be spoon fed and not just research it themselves.Heck you can learn A LOT about this subject for free right here on BP or buy a couple of $10 books on amazon.