About 4 or 5 months into the contract, the Landlord informs me that the house is going into short sale. He

Not with 1000s on the market in your area that are distressed.Not sure I'd want to get involved at all since if you buy it at a foreclosure sale, he may still not want to leave the house, or he might push his best buddy for some extra time to stay rent free.

Someone on the blog posted a comment that they had purchased a foreclosure, rehabbed it and then found out the owner had the right to repurchase for a year following the sale. He

Think of it from the seller's point of view.It's a short sale, he's getting $0 at closing, his credit is shot regardless of whether the bank gets 40% of what he owes, or 99%.

The CPAs I talked to mentioned it would not offer benefit with LLC due to it needs to be maintained paying $800 fee plus a tax of percentage of "Gross sale"(in this case total dollar amount of the property sold for, not profit I made on the sale), he said it's roughly $2500 for $500k property.

@Yang Xiao downtown apartment building is booming.

If not, I'll ask if he'd work with me on a short sale. He

Over the years I've talked to thousands of investors... that bought and held when they started.. leveraged out the ying yang... when they started...I did too...

You wanted to negotiate with the bank, but if it is a short sale, he still represents the mortgage holder/owner.

@Yang Zhang and @Vera Herlihy are two people who I know have worked with them.