Fourthly, if the house's finishes suck - meaning there's seams in the drywall visible, and the trim is crooked in spots, gaps between drywall and floor. 

They have loved together in a town house for 2 years . 

if i were to acquire these and have them be owner financed, I would want clear title and the other mortgage on this lot removed - especially if my loan has a balloon on it that matures prior to the existing loan, as how would to provide clear title?

Because they cannot afford the house or mortgage payment, and in many scenarios the rent payment is going to be the same or more than the mortgage payment.

He wanted it all sold as a single package with no owner financing.  

If you are going to buy $75,000 houses in Memphis, you need to go visit them in person.I don't know anything about these companies, but when it sounds way too good to be true, it normally is.   

The interest rate is 7%, so we suggest this property is for someone who wants to get into Lease Options and meets the other requirements such as adequate reserves and credit.That means, they buy the property, they wind up with $50,000 in equity and they do a Lease Option to a buyer who doesn't currently own a house, but wants to.

I personally am interested in creating a long-term rental portfolio but I'd be interested in hearing any strategy, ie. house flipping, short term rentals etc.

Ask to speak with some of their current owners and current/former tenants.

Jim it does not restrict owners from listing with brokers and selling..