I would expect them to re-sell it before then.My hope would be that a flipper doesn't buy it, but with the price and pre-payment penalty, I think I'd still come out ahead by selling it myself without an agent (I had a license in my previous life) and have bought and sold without agents.If my math is right, I should make 7% - 10% return on it.One downside is that in CA with the newer laws that are kinder to buyers who go into foreclosure, if the buyers can't/don't make the payments, I have to work with them to a degree before I could foreclose on them.The money invested in this property would not be money I would have to rely on, so if I did have to foreclose and spend money on it to fix it back up, etc., I would be fine if I didn't have the income and would have money to fix any damages, etc.I do understand that this would be termed an installment sale, and capital gains would be spread out over time.I met a man who had a property in WA when I lived there that had an old hardware store building on it and a residence.

They were listed as the "buyer" and then many times within 1 day later (or the same day) would resell the exact same property for 20-50k more.

If the buyer defaults you can foreclose, rehab and resell or return title to the original owner, with reselling being preferable both ethically and financially (carry the costs and sell the house twice, doubling the DP's and extending the passive).There are obviously several legal considerations, but the potential mentor's partner is an experienced and highly regarded RE attorney so I feel comfortable there.Lastly, the potential mentor doesn't want any payment up front.

@Jon AcostaLike Wayne said, it matters who the mortgage is, what the balances are, what the interest-rate is, whether or not it's fixed for an ARM, etcIf it's low equity then you can look at lease-option assignment or a subject to or some kind a wraparound mortgage or installment land contractOn a sub to or wrap or ILC, you have a due on sale possibility so I would recommend that you resell it for cash as soon as you buy it.

Then would I need to purchase new homes then resell to renters?  

Plus, you can re-sell it if/when you want to.  

Although I love that idea, I agree with another suggestion to just buy it outright, flip it yourself (don't have to argue with the heirs about what's the right way to change the house), then give them a balloon payment after you resell it.

You can always resell it if it warrants, and I would definitely account for providing the washer and dryer in the rent.

@Juan V Lopez - is there any opportunity to resell it now to someone like a wholesale and including your plans ?

Would it be worth it for the resell value?