While recording laws generally protect a bona fide purchaser (BFP) without knowledge of an unrecorded matter, sometimes a court will find the BFP had a duty of inquiry which if not exercised eliminates the protection. 

Just to follow up, after overwhelming replies of this thread, we took anther 3 days to work out all sorts of scenarios, mind exercises, and number crunches, and finally reached the decision NOT to sell the condo. 

You should go physically inspect all of the big ticket items associated with the house (roof, water heater, a/c, etc).  7.5% is well and good for spreadsheet exercises but if the roof needs to be replaced yesterday, that's immediate capex that you're going to get hit with that you should add to the outlay cost. 

I agree with sharing the valuation exercises with the investors- meaning the need to take a shot at analyzing the deal as well. 

So you're no longer personally liable for any debt.Both of these will return in the same range of your annuities but shelter the large cap gains and depreciation recapture looming if you sell and move completely out of real estate.a couple other options our clients will exercise:1.

Appreciate the detailed comments, even if I don’t get the house, just going through this exercise is helping me think more critically about these investments. 

I have a BS in Exercise Physiology and certifications through the American College of Sports Medicine (ACSM) as an Exercise Physiologist as well as Group Exercise Instructor.

If you attempt to buy in your own name then transfer the property into an LLC, then the bank can exercise the Due on Sale Clause, though they are hesitant to do this for notes that are being paid.The solution for this problem is the use of a land trust.

You need to exercise patience and let them know you are here to help.

I'm not saying that determining repair cost isn't great exercise for the wholesaler/seller to know when pricing their product, but as a buyer I wouldn't really pay attention to it.