They used to carry rental insurance, but they did not renew the policy last year.

I found 2 owners that were willing to carry the financing.

@Patricia Steiner of course I have looked for sellers willing to carry the financing.

Now how much of that passive loss, if any, can be used to offset other income will depend on A) if they are a 'real estate professional' B) if their not a REP if they have an AGI, adjusted gross income of less than $150,000 (which is pretty unlikely in our scenario if they invested $100K)That passive loss will be carried forward into future tax years, if it is not utilized in the current year.

I personally do that as well (I don’t look to my friends/family to carry my business).

Seller-finance simply means that the seller carries the loan and you make your mortgage payments to the seller.

The seller was willing to carry the property, but can’t because of due on sale.

@Bentley McKean, I think the ordinance would likely refer to the owner being required to have a license being the owner of the business entity carrying it on. 

Very cool, will the ARV value be high enough for you to remove your 25k renovations, original closing costs, and carry cost from the deal after fix up? 

Carrying a mortgage on a vacant duplex seems a lot more daunting to me than carrying a single or even double vacated quad pled.