@Jennifer Strickland Since you are interested in fix and flips, I propose the following action plan.

Account Closed  LOL anyone who things there are work arounds and short cuts for FHA loans has been living under a rock and hopefully my comments will spark some interest to understand that what they propose is not really feasible unless you find that RMLO who wants to wear some stripped cloths.I know a few.. who went that route took the feeds 5 to 7 years but they are now incarcerated. never would listen to me.

Agents from both sides spoke on the phone and buyers agents proposed extending escrow time and allowing change of lender if renter did not leave in time.  

Can I propose a master lease option with the current owner if I can secure $15k down through private lending?

I had a Contractor who started out great proposed a lot of good up grades but started slacking.

Yep these properties are always offered and some unknowledgeable investor will think they are getting  great deal.A few years ago, my son found one of these tax sales properties that was controlled for years by one investor, he forced the cancelation of the tax certificate and offered the city $30,000 for this commercial property, after a few attempts, the city accepted the offer.The property now is worth over $300,000, it has  two large apartments and a store on the first level.Talk to the right people in the city, present your proposal and they may accept it.Good luck.

If your reason to change the zoning is compelling enough, a win win for you, the city and the neighborhood, then you could make a proposal to the city that they do it for free or give you some sort of tax credit which equals the amount or greater.Look into it.

@Chris Sukala, Option 5: once you receive $52k cash, buy a DIFFERENT home for 30k, (put ~$25k into it) with 25% down and finance the the rest.This turnkey you are proposing looks to be about a $15k WORSE deal than your first one.

Give me a shout directly to discuss this interesting proposal you present.

This probably isn't newer construction (post 1995), so my experience leads me to believe that a $15k rehab is probably not realistic OR that more work is required than proposed in order to get the $120k ARV.If it's the Castleton house, I think you've left off money for updating the landscaping, updating light fixtures, redoing the basement, kitchen appliances, etc.