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If holding on to it, then ask for the $3.2K reduction and this is all a moot conversation.  

Since your seller is renting the home they will have the same issues, so you're compounding your potential of legal violations causing the entire arrangement to be tainted.I'd suggest too that you dig deeper in title and the name(s) of your seller as to doing the old finance with a small down, collect payments, foreclose rinse and repeat, illegal practice now, thank God!

Here are a few recommendations for you:Find and connect with other BP members that are in your area:http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you:http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts:http://www.biggerpockets.com/renewsblog/category/podcast/If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select that person below.

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