If you rule 506 under reg D you will be in compliance with all state requirements.

I am learning as much as possible before pulling the trigger on my first buy and hold property, and this post answered a lot of questions.

I have come close to pulling the trigger on the moving truck ad a few time, but I think lending it to my contractor has sold me!

I listen to every book I can about investing while I'm out landscaping and am finally ready to pull the trigger.

This would be no issue at all, except for the fact that he currently has a tenant in the property that needs to be evicted, but the owner of the property is reluctant to pull the trigger and kick the in debt tenants out.Question #1 - If someone bought the property, could they just evict the tenant outright?

This would be no issue at all, except for the fact that he currently has a tenant in the property that needs to be evicted, but the owner of the property is reluctant to pull the trigger and kick the in debt tenants out.Question #1 - If someone bought the property, could they just evict the tenant outright?

As to balloon payments, first they need to be in compliance.

You can quit-claim it over, but note that this may trigger a due-on-sale clause in your mortgage if you have one.Michael

Our TX attorney sited a couple of examples in casual conversation.You can do LOs in TX, just because some whizbang has done one doesn't mean it was in compliance.

It is up to the landlord to make sure they are in compliance through the whole process.