Instead all you get are angry investors who signed up for preferred returns, guaranteed returns, favorable distribution splits etc. who get nothing because there's no gain to be distributed. 

Once the seller signs it, use your CRM to mass-contact investors/developers/flippers in that area (perhaps using your database/services in a different way to identify these LLCs/people) and sell them your contract with an assignment fee. 

This is a sign of a possible scam.2) Look for a property and get it under contract.3) Request a quote or term sheet from your lender.

They're charging second mortgage rates on a first mortgage, nice investment if you can get it.Getting the former owner to sign a second mortgage for the amount you paid at tax sale works, if he pays, and if he signs. 

Another option is to co-sign but that has the same impact on my credit and responsibility to the bank.  

I suspect this was just an anomaly but it could be a sign of things to come.

Once they sign the lease and pay the deposit I credit them back the cost of the background checks off their first month’s rent.

Do you have anyone that could co-sign for you? 

I ask for a list of their current ongoing monthly expenses.Lastly, I have them sign an authorization to check all the above with their bank, their employer, etc.

When you sign the contract, let them know that you are trying it for 1 year and read the contract to see how much notice you need to give if after 1 year you want to manage it again.