Yes you can sell it, you will need to record the land contract with the county to show your equitable interest and make sure in the land contract it gives the ability to sell the property for more than the loan amount and the current owner will oblige to execute the documents as part of receiving the money.

Furthermore, I could've sworn appraisals are done when you have some level of construction documents so that a bank can loan you appropriately.

@Syamala Pullakhandam, did your tenant contact the water company and explain the situation?

I recently brought one of these situations to his attention and he became incredibly combative with me when asked to cease the action causing the liability.

If a seller is offering $10k in assistance but the PP is only $189k on conventional a loan with only 3% contribution allowed, what are all the options for the for any of the left over contributions after. paying closings costs ?

We are in the position to buy all cash but not sure if should go that route or so something like 50% cash and 50% loan.

Speaking of networking, I'm currently looking for an attorney & CPA to help with a proper corporate structure for my current situation and plans.

Intitutional people like us are going to struggle with a $50K loan.

If you really need someone to walk you through it then maybe find a private coach who works directly with you and tailors their advice to your situation. 

It sounds like you're in a very advantageous situation with only $500 payment towards housing expense and saving $3k/month.