Since my good friend and new mentor has extensive experience with short sales I decided to look into those as a lead source. ended up finding two motivated sellers.

Her loan officer then changed it to an FHA loan and we signed a 30 day extension.

I would send notice rescinding both the offer to discount the price(Could be interpreted as an option ) and the 3 month extension of the lease(It is not valid until signed by the tenant and delivered back to you).

Ive had my eye out on a few,havent made any calls yet,im really focusing on knowing what im talking about as far as the extensive terms involved with this bussines.

Not all notes pay as we know,  you can't be 100% perfect so you need to have some reserves incase you need to pay for a foreclosure or you take a property back and have to rehab it.. if you take one back you will have in most cases extensive rehab to do...

If it was just my sis-in-law and me, it would prob. be less, but our other partner has an extensive track record of successful MF acquisition and management.  

Liz has extensive knowledge in financing, appraising, construction, marketing as well as her greatest attribute is creating systems to maximize time, quality and monetary constraints to ensure efficiencies on all levels.

Due diligence on a hard money loan is less extensive than due diligence on a conventional loan.  

The house needs roughly $100k worth of work but the ARV is $750k and with the land if I were to buy the package is $1.4.My question is since it does need work (nothing too extensive) but since the guy has not taken care of it or even been there, it needs new doors, windows and there is a lot of marble throughout the house and some spots need repairs.  

Have non-refundable earnest money that keeps growing with contingencies in the original agreement and with each extension they ask for.Have a (right to continued marketing clause ) where you can kick out their offer if they do not perform.