This way if it comes back as a 2 unit, you can back out or renegotiate the terms of the sale (price modification).

For some reason, probably due to negotiations in the bankruptcy proceedings, the mortgagee sent my tenant an offer for trial payments on a loan mod being done under the Home Affordable Modification Program. 

I contact the seller and after a few modifications to the purchase agreement we came to a satisfactory structured contract.

Had a company that AHS sent over last year that replaced a heater, no issues.Different tech this year, same subdivision, different property, same setup (no pressure reducing valves and no pressure tank), and tech claims it needs "Sediment trap, expansion tank, T&P modifications, and permit", essentially more than what AHS says the new tank itself is worth.Figured I'd ask here if anybody knows the exact regulations, because the tech seems not to want to explain anything other than "We can't tell you by law, only American Homeshield can, we've told them what it needs".

The lease SHOULD have forbidden all tenant modification; as it is now with his free reign, he now has rights to the property even if the sale does not complete AND he has you over a barrel on unpaid labor.You need proper and immediate legal assistance!!

Timely and clear communication is vital.  

I want to give you my two cents and I'm going to link to a previous post where I commented on some vital HOA information.https://www.biggerpockets.com/forums/311/topics/405977-town-homes-vs-single-family-vs-multi-family-homes-in-minneapolisI recommend reading my post in the above link and then referring to some informational provide below.So from the sounds of how you're describing it, basically it would not qualify for Fannie Mae and Freddie Mac for whatever reason.This could be the case for many reasons.

There are markets that would probably be more immune to recession, such as markets near military bases, universities, hospitals, other vital industries and large concentration of government employees.

Just a method of reducing vacancy from the start and driving traffic just slightly with a simply modification.

I'm curious as to why the current MH didn't do a modification, get the borrower current, then season to sell.