The fix/flip might be a good way to get such a relationship started: usually has lower cash out of pocket requirements and you can sell the property faster to recoup the capital invested, plus any profits.

We have made money buying properety based on cash flow (lower priced) rented out for a period, then selling to an owner occupant. 

Know that every long term lender will require a survey and if something comes up on it when you are trying to sell or refi, you could get stuck in hard money without an easy or quick way to get out.Is there a pre-payment penalty?

Do not place yourself into a position of needing to sell in a reduced value environment. 

So, selling sub-to, the mortgage is brought current and timely payments are made by the new owner helping the original owner's credit CONSIDERABLY!

It could be that you just need to sell this property as it is not actually an investment, but something that is causing you to lose money by not obtaining occupancy, and certainly not getting any type of appreciation, equity, or ROI.

Sell and buy QQQ.

Foreclosure sale could sell at same price as original purchase, but with accrued interest and fees, all LP equity gone.At the end of the day, all LPs loses boil down to an issue with cash flow available and/or a decline in overall values.  

@Brett Coultas if you're a newbie, you want to be careful of an "investor friendly" agent selling you something they truly don't understand:(95+% of agents only know how to handle owner-occupied transactions - you can verify this by asking them calculate ROI for you or Cash-On-Cash!

Every hedge fund is always buying and selling assets.