If there is going to be any major effect, most serious investors should welcome that.

When the title company, escrow agent or attorney prepares the closing documents, they simply factor in the second mortgage payoff amount into the final distribution of funds to the seller.A second mortgage should have little or no effect on a homeowner's ability to sell her home.

I replaced the vanity, I removed the tiled walls but left it around the tub, which remained, added sheetrock, a nice border tile, new vanity, kept the toilet and had a clean nice bath for… $516.97.

Do you want to double close and remove the possibility that they'll walk?

The seller has put in a ton of rehab work (one of the bathrooms and both of the kitchens still need work and there is some landscaping and trash removal that would be great).

If she complains to the local authorities about it being uninhabitable, ask the inspector to order her immediate removal for health reasons and you wouldn't owe her anything other than pro-rated rent - which she hasn't paid. 

I think you could sell the house if you were to remove the trailers for 50k.

As long as he has the homeowners permission (that's us), he can climb on the roof, remove windows, etc, right? 

So if one partner wants to sell it would be just for the properties we own the two of us and would have no effect on the others.  

This is not cost effective for a rental based on the fact that no investor knows how long they will hold.