You sound like the brave side of the coin in that you did due diligence and respected the process.  

Yes, this is "tough love", but you won't survive in this business if you let it affect you:)

Do they have to go through eviction processes as well? 

Unless you've done substantial improvements to the building or used a large down payment when buying, it's unlikely this will work.Perhaps your best move is to find a new primary residence that is 2-4 units and repeat the process.

I just need to educate myself more about the lending process.

;(- if as-is value is less then the balance on the mortgage + arears OOOPS you need to have the owner work with the bank, you as the investor buyer AND a short sales expert often an agent work the tedious and usually failing short sale process. 

I am interested in talking to someone about the process of funding via DSCR the acquisition of a property currently being run as a PadSplit.

Tough one. 120 ft is nuts. 

If you're looking for something turnkey it will be pretty tough. 

Fractional TICs give owners the financial independence that has been associated with condos, without the need to wait for a condo conversion, a process which can take anywhere from 2 to 10 years depending on the specific requirements for the subject property.