It will say on the title report all the liens on the property which would include Federal liens for instance IRS and you would know up front how much it is.

At this point, the outstanding balance on the loan would be about $21,000.

I am not a builder so I don't think we can lien the property.

They'll still be getting full asking price, but this would lower my loan amount and slightly lower my required 3.5%.I've asked the loan officer if any outstanding funds could be applied forward towards interest but was told no, I just lose that money.

If there is a surplus the tenant is given the choice to     a) apply the surplus balance toward the next month's rent;   b) leave the balance in the utilities budget in anticipation of larger utilities bills (i.e. winter is approaching); or   c) refund the balance to the tenant (this option is only available at the end of lease, if there are no other outstanding debts owed to the landlord.If there is a shortfall in the Utilities budget account - happens very infrequently as we have a pretty good handle on the operating costs of our properties and set the monthly contribution accordingly - the tenants are invoiced and the amount is due at the first of the next month.

While most people find they wont generate enough income from this business to qualify to make any type of meaningful contributions, it would allow you to administer your own 401k plan, invest in alternative assets like real estate, and take loans from the plan, etc.If you want to invest in tax liens/deeds, or auction properties, or anything with a time sensitive nature, or fix and flips, rehabs, or anything where you will be making a lot of transactions, you might want to look at a SD IRA LLC option.

If there is value (say, more than $300-500) then file to do a lien sale for storage fees or get a car wholesaler in your area to donut do you and split the profits. 

Will a title policy cover an unfiled lien?

Methods of collecting on a judgment vary by state, but can include garnishing wages, levying bank accounts, putting a lien on personal or real property, etc. 

City liens where I am are sometimes hard to get payoffs on.