What are some of the challenges an owner would have accepting this type of deal.  

The whole reason FHA developed a short sale method is to reduce the loan balance down to reality, down to what the home is worth, down to the value of the collateral at the bank accepted. if they had the cash, they wouldn’t be behind on their monthly payments.You're right I overlooked that part.

If you use Hospitable for comm mgmt, Turbotenant for all tenant mgmt related items, and FFinder/your own website/Turbotenant for lead acquisition -- how do you describe your work flow across these?

I would check out his website. 

I've been listening to a lot of BP Podcasts and heard ads of this crowdfunding website.

All three generate leads from insurance claim residents and traveling professionals (medical and the trades).One of the advantages of FF has been that it's forced us to have systems in place to create leases, accept security deposits without co-mingling and provide "live" customer service. 

However, since I was already negotiating with them, they allowed me to accept the newly posted price within 24 hours, which I did.Now, I have two options: I could fix and flip it with an estimated $200K rehab for an ARV (After Repair Value) of $825K, having purchased it for $465K.

website is www.federa.com   it looks like they sell foreclosed and pre-foreclosed properties? 

Reach out to a few, see who you like and see if they are accepting new clients.

Vito - Have you checked to see if there is an I-card for the property on the HPD website?