I toured the property when they were home and they asked me how the living situation was gonna work, which I explained that my loan said that I had to live on the property for a year, and the tenant next door was on a year lease & he was month to month... so he was going to have to leave.

I know a lender that does 15% down on investment loans.

If you close with a conventional loan, it will need to be in your personal name.

@Jeff Nash would be a great resource to speak with on companies/investments to offset your W2.

These are the key to getting a loan.  

The value in what Brian brings is that IF you find good deals there and WANT TO do them, being in his program, his contractor will front the reno money until you get construction draws back from your fix and flip loan. 

@Adam Newman yeah, not understanding your statements, "I have $50k plus about 7k in the bank" and "take out a loan and go in with 20% from the start?".

The sale failed and he still owns it.One of the potential solutions is to use an SBA 504 loan for the real estate. 

And addressing my item #1 comment, almost always, when a "distressed" homeowner is approached, they initially are grateful to have the loan brought current, but before long they forget the circumstances they were in and you become the bad guy that stole their house.

But her company, like so many, has whittled down their actual service to the point that they aren't really doing useful work, just enriching the CEO.