You won't be able to get title insurance on it until the redemption is up, and if they redeem you won't be reimbursed for any non-essential repairs.

While predicting value down the road is hard a safe guess 4 years value will be $45,000.Management is in house, taxes / insurance $165 a month.

.$800 insurance.20% down @4% mortgage.House is built in 1995 and is in excellent shape, w/new roof in 2010.Would have to do lawn and snow Myself.Here's the angle.

So far I havePM fee (% of rent or flat fee)Lease upsMaintenance (upcharge)Vendor rebate program on items such as appliancesPet fee (not sure if this goes to the owner or PM)Lawn care (upcharge)CleaningRenters Insurance (commission?)

Now, while they may make it sound risky to get a special warranty deed (which is standard for REO sales), in actuality, the title insurance you get should protect you from any encumbrances even prior to the seller's ownership.

However, I would call your Insurance guy.

If the use is not legal, the property is not eligible for FHA mortgage insurance.

The closing attorney must also be an insured closing agent of the title insurance company, that can usually be arranged, but the title insurance company will have something to say about that and most have attorneys and the agency may be owned by one.Have you even asked the discount company if they have closing attorneys, as it is a specialty and you may bump into an attorney who gets into a situation where they would normally be assigned a closing through the title company and then receive the same request for service from the discount company.

My guess is the $100/mo is post expenses (taxes, insurance, mortgage, etc).

Started as a Realtor, then went mortgage broker and now an Insurance agent.