If you are zoned for a triplex then you can see what they will require, which will most likely include sprinklers in the whole building.

Then I refinance it with a long-term DSCR loan.

Then get a GC to give you a tight proposed budget to restore this old beauty back to it's former glory.This sounds like a $200k - $300k remodel at least.

The cost of the program is 35K upfront and then approximately $3500/mo for all marketing.

If anyone finds a deal that meet the criteria Jerry is looking for then contact me and I will take it and pay you 10k and you wont even have to pay anything up front.

To play devil's advocate (and keep in mind I have no skin in this since I'm in a different market):-You want to tailor to investors, then be prepared to sell at an investor price. 

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option.

When it was all said and done I still ended up being able to pull about 5 to 10k more out of it than I put into it.Current mortgage including taxes and insurance is $1,519 and it's currently rented for $2,546/month.Yes, you can buy a house at auction that you then flip and sell for market value.And yes, I have participated in online auctions.

When I buy an occupied property, I introduce myself to the tenants on the day of closing; then, I inspect every unit within one week.

I use the data to target specific area and then send out direct mail those area.