I have to qualify that by saying I haven't actually talk to an owner face to face yet but the majority aren't doing it because of the confrontation aspect. the main expenses are time, gas and any notes that you leave for the owners.

Most people when confronted by people who are in the wrong AND who have power over their lives will push back.

You could make the restriction more general then just signs if you think it will be less confrontational.

Try not to have any in personal confrontations or conversations even on th e telephone.  

ThanksGreg You didn't specify the upside nor speak of a value add play in the deal so it's a little difficult to speculate how to best structure a creative financing package.Assuming it's a value add play with good risk adjusted gains at the end of the process then maybe the safest route is to negotiate a wrap transaction with the seller, and if your are concerned about a due on sale clause make it contingent on the lenders approval.The seller will confront these same financing scenario issues with all other buyers so if they want to sell the property then they can either deal with the issue with a reset and able buyer, you, or kick the can down the line looking for another buyer who maybe willing to assume a less than stellar financing package.As the buyer though your only concern should be the financing package that delivers you title, assuming you plan on making extensive improvements to the property, and allows you to earn what you determine is a reasonable cash flow from the project.Options aren't bankable.

Did You Confront Them or Just Let it Go?

It could be a way of avoiding confrontation with the tenants, rather than the " I know a guy" method.

I feel like it would be better to present yourself to the other tenants as the property manager because they will probably be willing to give out more information than if you confronted them as an owner.

He is a good worker, but I am very concerned about having him work on occupied properties (so far I have only had him do exterior yard work on vacant houses)--   When I confronted him  about what we found, he said that I was happy with his work so why am I concerned about lhis past & doesn't everyone deserve a chance, etc.What would other landlords do? 

Last thing you want to do is confront these people and have it turn ugly.