I've done my analysis and found a deal that I really like, that has seller financing that balloons in approx 2 years.....cash flow is pretty attractive, but the down payment is around $300k, and I was looking to put down a little more than half of that.

Some of the Yellow Letter information applies and some doesn’t.Experience and reading through some of the more technical information on finance, real estate and marketing discussed elsewhere on BP is the only way to move from beginner to a level where you can earn a sustainable income.

Next, I would send a letter, or go talk to the tenant in person, and let them know that it has come to your attention that they have been smoking "in" the apartment and that per their lease that is not allowed.

(Unless specifically specified by statute or legal agreement, both of which are unlikely).The court doesn't always look at the "letter" of the incident, they look at the intent.

Super glad it worked out for you and @Shawn Faris, I would not look at it as a mistake that you made, it was an experience that has opened you up to learn something new and in the end, she reached out to apologize.I would hold onto that letter/email for your records.We all learn as we go and without some of these horrible experiences we would not learn something new.So as horrible as the experience was, embrace it, learn from it, add an abandonment clause to your future leases and move on.Do not blame yourself for not seeing this coming.

That is usually done by having your own CPA, Attorney, or Registered Investment Advisor (someone with a license) write a letter stating that they have reviewed your financial statements and/or income statements and that you are indeed Accredited.

They sent demand letters.

How does this new law impact lienholder redemption rights (where they have that additional one year from receipt of the letter to redeem) and the judicial redemption rights of the owner, where they have 3 years after the certificate holder takes possession? 

I would strongly recommend getting a pre-approval or a letter of intent before you talk about a Heloc.

I would also recommend doing a balloon payment sometime from 2-5 years of executing the deal so you don't have the service the loan for a long time.