Setting up a single-member LLC to purchase the property and having your parents make the loan to the LLC can be a good way to protect your personal assets in case of any legal issues related to the rental property.In terms of setting the terms of the loan, it's important to discuss and agree on the interest rate, payment schedule, and any potential penalties for late payments or early repayment.

If you do make contact with them (and you can make a deal) these back taxes would have to be paid to SPS, in addition to all past due payments, penalties and interest.

So we work with our tenants and try to help them out to avoid the harsher penalties the lease calls for.  

Hard money loan is typically 20%+ down payment with high interest rates and interest only periods, they aren't meant to be held for long, but can be paid off without prepay penalties typically when you get to the refinance.A bridge loan is a product some lenders offer that is basically a hard money loan with a specific plan to refinance with them when the rehab is done.Just keep in mind the new rule coming out for seasoning periods (going from 6 months to 12 months) so in many cases you will be forced to hold the original loan for a full year, makes BRRRR'ing much tougher.

This can help you save money by avoiding penalties and maximizing your deductions.Keep up with changing tax laws: Tax laws related to real estate investments can change frequently.

Ask the lender how they are "qualifying" the deal (lease vs 1007 market rent VS STR data if STR), understand how the rental income directly impacts deal eligibility, ask about rate buy down options, understand prepayment penalties and the options available, ask what amortization options they have (I/O, ARMS, Fully amortizing). 

All the tenant needs to know is: a) you are listing the property for sale, b) give them the option to get out of the lease with no penalty if they want, c) who to pay rent to if they stay and d) how to pay the rent.You also need to get the deposit back from the landlord and get a copy of the lease along with the move in inspection. 

You can also close a loan in an LLC under a portfolio product in an LLC with a 30YR fixed or fixed ARM with no prepayment penalty. 

These prospective sellers are in need of capital or they may lose their home entirely due to penalties, fines, and tax liens.Out-of-state or out-of-county property owners - It’s also worth keeping an eye out for owners who live either in a different state or different county of where their property is located.

You need to have an operating agreement and it needs to spell out in DETAIL what everyone is responsible for, how proceeds will be divided, how expenses will be handled, who is responsible for what and what the penalties are if someone doesnt do what they are supposed to.