The big builders are battling lawsuits everyday by lawyers who form class actions declaring multiple defects, in my opinion don't join one of these, but make sure the builder knows you will do as you need to get any issue resolved.Worth doing IMO, but do remember if it is a tract home, they were thrown up pretty quickly, and may not be to the same standard as a custom builder.Andrew

I laughed when I saw the amount of RTT that the bank had to pay for the QCD transfer from Freddie Mac to JP Morgan for the REO I just bought; the transaction value was declared at $1, but they paid about two times the transfer taxes that I ended up paying for my end of the purchase.

These are the tenant's funds.You are not allowed to use those funds for any purpose and doing so would leave you open to being declared in violation of the law on all leases using that account.

Correct me if I'm wrong, but what I think @Wayne Brooks is saying, is that the borrower does not have options like "Keep your Home" or bankruptcy, because the borrower is deceased.  

The same individual who lends money to an investor for a real estate deal can end up spending a great deal of additional money if he needs to foreclose, if the borrower files bankruptcy, if he gets the property back in disrepair, if the investor does improper or noncompliant improvements to the property, if tenants damage the property, if the county condemns the property, if there's a title issue and the title company doesn't cover it, and about two hundred other things that can go wrong.  

If you have a principal who is on the edge of bankruptcy and he has a business loan application that has a dCR of 4 to 1 that will go away in any bankruptcy if he has ownership of the business, his stock or capital can be at risk.Other considerations are the abilities of management in a commercial loan, the owner's ability to make things happen as expected, the credit report is a good indication of individual professionalism and responsibility.So to say it doesn't count is not quite right, it counts, but the first test is the DCR and that is waht will show on processing docs.

The first thing you need to declare is what is your goal for this investment?

According to the video the US Government is making preparations to declare "martial law" in the entire US.

I, personally, would consider any other option, including bankruptcy for your sister if she really has that much debt that she can't pay, rather than ask my nephew to give that much equity away and start over smaller with a much higher rate.         

The tenant could file bankruptcy, and the owner could be dragged into this because of the upfront rent the tenant paid.