What ended up transpiring with this potential investment? 

In my experience, there’s always a story and sometimes the details in the deal are much different than one would imagine.What I see: someone who endured 12 months of anticipation, anger, humility, learning, letdown, stress, joy, and most importantly a mother flipping desire to take control of every facet of every transaction I will partake in in the near future.I’m emotionally exhausted thinking about what transpired over the previous 12 months.

I reached out to him trying  to save the home on it as a flip and residential contract and things quickly transpired into a much bigger ordeal.

@Maranda TuckerYou need have more knowledge of real estate investing than money.There are many investment deals that transpire throughout the real estate market every year.

When I would go to court I printed out the Tenant Ledger Sheet (History of their payments and what they were billed for, whether it was for damages they did, late rent, whatever it may be,) and I printed out their History from QuickBooks along with phone messages, left on my machine, letters I wrote them, their lease agreement and everything that transpired from the day they filled out an application to the day I had to go to court. 

However my realtor / property manager assures me that almost no one pulls permits in this fashion in my market (Huntsville, AL), and that the length of time since the remodel transpired means we're probably OK. 

Thanks Bill, I will let you know what transpires.

Definition:Extortion - The practice of obtaining something, such as money or something of value, through force, threats, fear, or violence.Synonyms: blackmail, shakedowns, fraud, stealing, or racket.NON of this transpires when I offer cash for keys.

The 12k will just about catch up my legal and other costs and set the note back to making money.I have been in this deal for two years and have not made a dime because of my legal expenses and covering my mortgage, it's an owner financed wrap mortgage.To sum it up this is how it all has transpired:-rented it to him for 10 months, he was late paying 8 of them(red flag, I should have stopped there, gave every excuse in the book, I'm an idiot I know)-owner financed it to him, no money down (big mistake, I'm an idiot again I know)-he never made the first payment and after I sent the foreclosure notice he filed Ch13, 5 months into the ch13 his payments started coming through -9 months into the ch13 he was laid off of his job-6 more months later we got the case dismissed and set up the foreclosure auction for next month, April 5th.Please don't beat on me about this, I know I messed up on many parts of this.

I do need to re-evaluate my strategy again and sustain my campaign.I even  do a lot of driving 4 dollars (when I have time, also just as a hobby/or way to get to know neighbors/ neighborhoods...you get a lot of info when you walk streets before buying), as well as direct marketing but nothing has transpired to much.