Purchased on Auction for $84,000rehab est $44,000est ARV $200,000no money borrowed as of yet. 5 bed/ 3/bath 1 FP 2325 sf with formal, den and large kitchen

If a tenant disappears without formal notice, in both states of our rental properties, we can keep the deposit for any rent owed and any damages.

And to clarify, I do plan to use an attorney to structure the formal lettering of the agreement.

To be an FHA direct lender you need to meet the following requirments: 1)Certified original audited financial statement with adjusted net worth of at least $250,000 that has been prepared within the last year.2)A senior corporate official showing at least 3 years of experience handling FHA affairs (loan origination and servicing background) 3)Multiple credit and background checks to verify legitimacy of the heads of the institution.4)$1 million warehouse line of credit or equivalent funding program to show liquidity and lending power.5)Business plans, quality control plans, E&O insurance policy, sanction letters, fidelity bonds and other formalities to provide security.As you peel the onion it makes more and more sense why some lenders offer certain services & products and why others simply don't qualify to do so.

Has Fireplace in each living room, formal dining room w/ built-ins, hardwoods under carpet in living/dining rooms, and hardwoods in bedroomsHere's what I see as the big kicker: There are $62,000 in back taxes from the last 3 years unpaid, which includes a host of assessments and vacant building fees. the owner is elderly and has early Alzheimer's, so I believe he has neglected these partially due to this and partially due to his being angry at the situation (lawsuit + city issues).ARV on the house is around $425,000 and I think I could buy it for around 35% of value and would have to pay the taxes and do all repairs/updates which I estimate would be around $60,000 total.  

You can get a loan without working a formal job, but if you're relying on rental income it's going to be tough, and here's why.Typically when you report your rental income on schedule E to the IRS, the idea is to minimize your exposure and maximize your tax refund. 

Especially for the delinquency notice, that was reported by someone, and there will be a record of that so you can follow-up with the reporter first.There are formal dispute policies for credit reports that contain errors.

You then formalize the deal with a standard purchase contract then assign or double escrow to the end buyer.

Come to an agreement with a buyer whereby the walkthrough is a mere formality. 

I would also want a more formal written agreement that states what she can and can't do, and allows for the arrangement to end by either party and the rent re-sets to market.