Posted by Michael Morrongiello on February 14, 2000 at 14:15:32:
If you are going to have the seller deed the proeprty to you and take back a purchase money mortgage then you would legal vested title to the property and would enjoy all of the benefits that go along with that status. As the property owner YOU would be responsible to pay your property taxes and to maintain insurance.
As for first rght of refusal language. This is something that should be inserted in both the mortgage and the note. In essence it give you the first right to purchase the mortgage and note in the event the seller were to attempt to sell it at a discount.
If you are putting down a substantial down payment and are establishing a strong equity position in the property perhaps you can after a short while place a 2nd lien mortgage against the property to pull some of your cash back out. However I would not consider this as being easy to do.