The other way to handle it is to have the seller deal with it before you close, or as a condition of close, assuming your local statutes allow such an amendment to survive close of escrow.Also, make sure the tenant deposits are made part of your escrow close.Just thoughts.

In some situations you can agree that the borrower will become liable for any tax liability difference in paying off the note early, use that in your sale contract with the agreement to survive the closing, see your attorney.

Figure I might as well ask you here since you seem to know what you're doing.Aside from probate leads, I have a nice list of leads where the owner has passed away, there is no surviving spouse, and they owned real estate (got these from Obits).

@Arthur Banks Thanks for posting this, I'm in learning mode and it definitely helps to see real numbers that I can practice calculations on.

We joint venture on most of the projects that we do but the model is slightly different.

Are you guys still in correction mode?

Then I flipped hotpads into "for rent" mode, and search for rentals in the same area and compared attributes, trying to get a fix on the ratio between prices for sale and typical rent for a similar property.

If you can't tell the sellers the truth about what you're doing, then your business model is a sham.

Right now I am in a fix and flip mode and have been looking for a certain type of deal which is relatively hard to find in my area.

If there is a noteholder (lien holder) involved, does the first lien survive the Public Administrator Auction?