It is NOT as hard to qualify with rental income as borrowers (and some LO's ) think.

What you want to avoid is a company or LO that can't explain how they work, have never done any, shy away from them and don't have a concierge service to handle the HUD Consultants and draws during and after the transaction.

Here's your picture once you filter for that:https://www.redfin.com/city/7006/CO/Fort-Collins/filter/sort=lo-price,property-type=house+condo+townhouse+multifamily,max-price=400k,hoa=100

I spoke to my LO and they said if there is enough equity to cover the cost of selling as well as the amount still unpaid to the mortgage servicer then we can list traditionally and all would be okay.I'm posting here before speaking to a lawyer to ask more about what legal recourse does the owner have.

(This part does not trigger a due on sale clause at all as she is still the owner here)Then, do a contract for beneficial interest, this is like a L/O or an agreement for deed except it is for beneficial interest of the land trust.  

We did a 203K in Gardner (JC , KS) and we used Dustin Shepherd from wells fargo, the process was a NIGHTMARE because he went on 2 mexico vacations and constantly asked for documents we already provided... but in the end we did close and we got a great deal on the house and did the renovations like we wanted :) I wish you luck and hope you can find better than our LO

Have your LO give your agent some fliers to leave at the open house, letting folks know about the 3% down and 5% down options.

If you need a lender in Wisconsin, I'd recommend googling Movement Mortgage (Wisconsin) and find an LO that's close to you.

Make sure it is not only a reputable lender but also an experienced LO.  

If the terms of the ARM is favorable, you might be able to rinse and repeat selling LO several times should the initial LO buyer not exercising his option.Good luck.