I know a land contract is different but but basically the tenant pays the insurance and makes the mortgage payment, gets the deductions and benefits of home ownership.

Trying to acquire a house for rental purposes, long term strategy is to rapidly build a rental porfolioPurhcase Price is about $55,000 two financing options available:1. 90% loan which will be at %7.25 interest and tie up $5500 down payment..will also cost and additional $468 in private mortgage insurance(PMI).2. 80% loan, @ %7 interest, will tie up $11,000 down payment, but will save the PMI ($468 a year) and a %0.25 in interest and ofcourse financing less which will lead lesser payments and lower interest paid.. the total savings of interest saved, PMI, and cost of barrowed less funds will come out to about $90 a month which is about $1080 a year savings over finance plan #1..which way is better to go?

Or they do not want hassles from their insurance company.

Normally getting a deed from the original owner will suffice for a title company to write title insurance on it.

There are very few disallowed investments -- collectibles, coins, life insurance.

Note that some income might be best run through a different entity so that you can provide company benefits to employees (medical, dental, vision, auto, life insurance, pension).John Corey

Most of the time the selling lender will pick the title company if you want them to pay for title insurance, which technically is a violation of RESPA.

If the borrower took out the 2nd knowing that it was not a 2nd that is different than someone forgot to record.There could be liability for the title insurance company if the 1st was not recorded and yet a policy was issued indicating it was in 1st.This one could be fun or a waste of time.John Corey

I would strongly recommend the insurance for a touchy, tempermantal purchase like this because it seems to have paid for itself for me.

In some places title companies will refuse to issue title insurance if a quit claim is used.