I'm hoping some of you experts in the community can share an answer or idea which may expedite the process of getting a mechanics lien removed. 

Keep in mind,this house needed absolutely everything (basement, mechanicals, facade, etc), but the investor should be all in around 280k and can easily sell for 375k+ when it's all said and done!

I would also add gas inserts are a nice backup in a power failure but know what you are buying,  how many BTU s  does it put out etc.   

A competent accountant or tax attorney can file legitimate write-offs, deductions, exchanges and other mechanisms provided by law. ?

And also add that when a landlord is looking at their rental history and contacts you, you will have to be honest in disclosing the failure to pay on time. 

But it may not be an optimal strategy for a novice real estate investor merely as a mechanism to save a few $$ on flips.Sorry for the length of this.

Having a backup plan and understanding that your current plans may not work out can make all the difference between success and failure. 

Failure is not an event.

The balloon is not the reason for failure in that situation, it's poor management of the asset by the owner.  

When you don't file, there might be a penalty for failure to file, and even worse they could try to say "tax evasion" ...