If you want to protect your investment, spend the time being clear and thorough in your scope of work.

The owner is around 65 years old and she doesn't want to use a realtor, doesn't want to be a landlord anymore, is free and clear on the property, and wants to finance the property for her retirement income.  

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien. 

@Matthew Paul @Russell Brazil @Ben McMahon @Ray Johnson @Dan Bernstein @Sam Lin @Bobby Montagne    Thanks everyone for your advice, it's very clear now. 

This way you will cut down cash flow but no problem with appreciation.

The property will not clear the liens processing office without notice from the city attorney.

I think the Perdiem is more like 59 a day but the establishment has a food and supply thing they do and offer to fill your cabinets for the 59 of course they take a cut also.

D is clear, it is war zone areas where you would never want to go after dark. 

My plan is to purchase this deal for $200K cash and wholesale it.This situation involves a 101 year old elderly family member that owns a Davidson County, TN residence free and clear of any liens.

Originally posted by Account Closed:@Adam Adams3 appartment buildings and 6 houses with 40k in hand121k gross income at say 10% annual that's 1,2m worth of real estate That's a 30:1 leverage...or 97% LTVI want the name of your lenderHonestly after the subprime crisis mess, i thought they would ban that kind of excessive leverage but it seems it is back to business as usual My average LTV is closer around 55% *NOT 97% The part you missed is: I'm not paying market value: To be clear, my lenders are private lenders.For example:Step One: 40k in the bankStep Two: Purchase 100k worth of property which grosses 18k/yr.