@Koob Moua your contract sounds contradictory so you can try, but if they refuse you really dont have anything to stand on.

Sounds like a complicated situation but I can't see how letting the house go into foreclosure is going to make it better. 

It sounds like you could really benefit from talking with some folks in your local market who have done these types of deals before.

Sounds good. 

listening to BP podcast interviews, I hear people say that the lender has the option to demand payment in full to transfer ownership, but they dont do that because they are happy to be getting paid. sounds like a scenario that could go against me if the current owner defaults on his loan, or if the title company wants me to take full control (which I was trying to avoid anyways with this whole tactic).

@Dom ChitDom: Sounds like a fun project. 

It sounds like you have something to offer, so you just need to make sure you work carefully to choose the right situation that will be beneficial to you in the long run. 

Sounds like that may be even more of a concern when you're working in lower income areas, as they're probably going to have more issues.On top of that, the property is listed as a 4plex, yet the county records show it as a triplex with a garage (so they likely converted garage to an additional unit), and the "land use" is defined as single-family (which is confusing, because the same page says the property is a triplex).Will be talking to the current PM hopefully today to get his opinion on the property and area as well.

Was able to negotiate a master lease for the property and take over management prior to purchase in order to generate some of the funds needed for the down payment.

@Neel Jain, I think you are right on the Cap Rate. 12.31 doesn't sound right.