Chad, before I start, when I see someone making a loan at 12% interest, it sounds to me they planned to sell the loan at par or very little discount to someone in the industry... big mistake, because industry folks buy at discounts, no matter what the interest rate (at least I do).Anyhow, here's a quick guideline for you when selling notes: How do I plan to sell this loan?

However, it sounds like they're just being awkward, though. 

Sounds like you don’t know the balance of the heloc.

Sounds like the owner now has a renter, depending on if the lease and the option to buy were written separately.

Sounds good, is the reverse exchange akin to an EAT or an entirely different animal?

At 50-90k that sounds like a total gut job

350 cash flow and don’t have to do repairs like a rental sounds pretty good.

Does this sound like a good deal for both of us or am I overlooking something?

That sounds about right.

It sounds like you are doing well and with that comes a tax problem.