Has anyone had any success marketing to people that are in redemption period?

Even the executed contract should not guarantee your happiness, because the seller CAN exit the contract during the attorney period.

They must provide the tenant a certain amount of time to remedy the current situation (in this case, payment of two months rent) within a certain time period (3 Days).  

While some would hope they don't get caught during the option time period, the ethical thing to do would be to approach the loan holder and get approval to continue with the status quo until the option exercised.  

(This can be risky; use a lawyer.)And everything is negotiable: price, interest rate, who maintains what, time periods, everything.

One thing I will say is that I don't tie up properties for long periods of time.

Property you purchase with the intent of holding for productive use in business trade or investment and not primarily for resale does qualify for 1031 treatment.There is no statutory holding period but in general the longer the better.  

Then use your due diligence period to dig into the operating data and physical condition of the building to make your final decision.From what you posted, it sounds like it could be a winner.Good luck.

We have used this type of "in house" loan 4-5 times and then either sell or refi after the 6 month seasoning period. 

Don't waste your time if you don't have a marketing plan and budget...period!!