The "just market value" of their land is then listed at $250K (the county defines JMV as "The price at which a property, if offered for sale in the open market, with a reasonable time for the seller to find a purchaser, would transfer for cash or its equivalent, under prevailing market conditions between parties who have knowledge of the uses to which the property may be put, both seeking to maximize their gains and neither being in a position to take advantage of the exigencies of the other.")I am very interested in learning by participating in this deal but I don't know whether i am getting screwed through 1) him assessing my basis too low by valuing it at 212 instead of 250k and 2) the terms of the overall deal.I am leaning towards doing the JV since there are other places where I can learn about rehabbing and renting, or flipping, but this property offers a great opportunity to participate in a development with a high quality experienced guy who is very well connected. 

2) How do approach the deal with the other party ?

It is a legal matter with a bilateral contract, has nothing to do with a due on sale clause.Putting an end buyer or tenant after you buy Sub2 only complicates matters as now you have a contractual obligation to the party in possession.

Other things to check include: was the notice of sale properly published, are there any federal tax liens, are there any liens which survive the foreclosure(in my county people borrow money from the utility company to put in a heat pump and they put a lien on your house, those liens survive the foreclosure), did they file a substitute trustee, did all parties sign the previous warranty deed, does the legal description of property match the address, are there any survey issues.

What terms and conditions should I add to our contact to protect the interest of both parties?

No need for me to set up third party to collect the mortgage ?

Thirdly and my least favorite is the TKs.  

I could learn a lot that i could use towards doing BRRR's and just general maintenance of rental property to save money.3) my third option would be find a job somewhere in real estate.

PERIOD.Look look look:Do you know what the most annoying part is?

You can also terminate without the need for a Notice of Default and Opportunity to Cure if when the second similar default in six months has occurred, or when there has been the third default of any kind in twelve months.