As for taking it by QCD, the bank will generally be much Less willing to negotiate with you, as opposed to the original borrowers, and likely just to foreclose.

@Brian Gibbons it sounds like the craigslist poster was intending on finding another investor to purchase the property, as opposed to entering into a lease option deal themselves with the seller.

That might help you find a more professional tenant as opposed to students.

As I mentioned earlier, I run my own credit reports and get the applicant's full report (as opposed to simply a "recommendation" that some sites provide). 

And I only see one other forum post that you have participated in with bunch of people opposing this legitimate scheme.

I've seen a video on youtube froom "Commercial Property Advisors" saying that it is actually better to buy a 5+ until as opposed to a 4 unit building because then the loan is commercial and the property cash flows factor into the evaluation of the property in underwriting (in addition to you still being checked out for income, assets, debt, etc.), whereas with residential, you can qualify for residential on just your income and assets alone, no evaluation of the property.  

Yeah, unfortunately this is just another example of some "investor/wholesaler" getting in the middle of some sandwich leas option type deal, likely to blow up.A couple of questions, the "didn't complete the short sale" sets off an alarm bell.Is title still in the original owner's name, as opposed to the guy who "sold" it to you on a lease option?

If I am working as an agent with a flipper...I will generally list their property on that back end at 5%  as opposed to 6% because I got the buy side of the deal a few months before that.

However, I'm not opposed to a flip if I could find the right partner.

He is attempting to sell the property to pay off the lien and have some $$ for him and his siblings to split as opposed to getting nothing if the home goes to tax sale.