Since mid August til now I have lost 5 tenants, well two left deposits and moved in prior to the month.

the investor may or may not seek to redeem the rights up to that point. i can't get them at this point.and who knows when the judge will approve the sale.now, of course, i regret not approaching the owner for the redemption rights prior to the sale being approved. 

Several banks offer soft inquiry options, I'd try those out prior to risking the HP.

I am looking to purchase this investment duplex property which was built prior to 1940.

It might be legal now, but it wasn't that long ago and they definitely have prior experience with these scenarios.

@Kevin Collins I apologize; my response came out a little rough around the edges and I assume that you certainly have done your homework prior too.... but that is a bit of my point... nothing will change when you go and work with a realtor and find investment properties yourself... figuring out what the property is worth IS PART OF THE ANALYSIS (if that's important to you) and because of this it is no different than other than you should now be verifying what the realtor will tell you it's worth as opposed to what the turnkey is telling you. 

And the math of that property as a held asset going forward, given that new capitol investment, may not make sense as it had prior. 

With the increased competition, it’s also crucial to prepare your listing to stand out and work to address buyer objections prior to going on market.

I suspect in most mortgages the Borrower entering into this type of agreement without the written consent of the prior lender would be a default.What debt coverage ratio do you think would be fair considering the risk? 

It’s also become evident the seller knew of the encroachment prior to listing.