fast forward to closing time: Seller fled the country. takes me 10 months and countless visits to small claims court to get a court order to permit escrow/ title co. to release my EMD back to me.

You never let a tenant move in until section 8 passes the inspection first.If you let them move in and then section 8 does not like something it can take forever to release the funds.There are 24 hour notice items to fix and then items they give you say 1 week to fix.You need to make sure the tenants voucher will cover most of the payment as they usually never can make up the difference.

The additional money you may collect each month may not be worth it.Even in an active rental market, it still may take a month or so to re-lease the property.

I would imagine she would be willing, if not eager, to be released from the lease.I just caution you to consider of all the possibilities before you act.

Keep it up and I may start believing my own press releases ;)

there should be releases filed even if the loans were transferred... 

He proposed the following:1.We get blanket loan of $150,000 - $200,000, net out 2 pts up front, 12% interest from day received at title2.Money is in title company and interest starts day 1....continues until paid off in full and closed....SAME MONTHLY PAYMENT IF THE MONEY IS BEING USED OR NOT3.We can also use it as POF / exchange properties in and out w/ approval4.Place security against properties as needed with mutual agreement and email only needed to title to authorize substitutions5.When we sale property, money goes back to title to be used for new property...W/ APPROVAL6.New property identified, money released to Seller (at mutual agreed percentage)7.1pt on that release amount pd to John to cover his time for sending the email authorizing it.....SO EVERY TIME WE SUBSTITUTE A NEW PROPERTY YOU WILL MAKE ANOTHER POINT ON THAT NEW LOAN AMOUNTWhat are your thoughts?

The transactional lending company will require funds in escrow from the end buyer first before releasing funds.

If you sell the house or refi the house, the lender is going to then have to release that 20k money to you regardless.  

If you lease up the other space you could cash out refi likely at 75% ltv with a larger value.Why can't the lender just release the other partners off the loan and you preserve your cash??