I suppose that simply is what it is.  

. . .1) a 60 year old house in dated but reasonably good condition is purchased for 75K2) the insurance agent's system determines that the correct replacement cost value for that square footage in that location is 190K3) it's insured for 190K, but with Actual Cash Value coverageWhat amount might be paid by the insurance company if it was a total loss shortly after it was purchased?

Have you really explored your market to determine what values are and is your market going up or down?

@Edsiaren Ignacio , the 2% rule simply doesn't work in higher end properties unless you buy way below market.

You'll need to determine exactly what it is and plug in the correct number;3.

Don't simply send payments to a seller, you need some servicing or escrow method to show payments were made as agreed.

The specifics on seller financing have yet to be determined.

The deal we are pursuing at the moment is private, hence we have been doing all of the preliminary work with CMHC on our own to determine if we qualify.

The LTV , 78%, IS determined by an appraisal, which borrower pays for, not the original purchase price (maybe on the first year or so).

And if the executor is dragging their feet (grief, confusion, etc.) any other heir can quickly file for executorship, and get it simply based on the other sitting on rights that will harm natural heirs.