Mind you, there are some states, specifically NY where you could be on the hook for code issues on vacant properties, even if you are just the lender, so best to do your homework on each state. 

Cash for keys is a business decision, it is not an emotional decision, and usually the math works in the landlords favor.As others have said, the trick is to execute it properly.

And then buy.I'm not saying don't do your homework.

Not important for the numbers/math to be perfect, but more of a line of thinking.Am I on the right track here?

I  really have been doing my homework and my business partner and myself have a great business plan in place. 

The purchase was $375,000 and the rest was used for renovations.My cost bases in the building will be around $740,000.I refinanced the building with a $900,000 loan.I have an offer on the building of $1,400,000Total capital gains would be about $660,000So, my question is after selling the property (for easy math) lets say I walk away with $500,000 after paying off the bank loan.

Eleven players on each side of the ball, we've done the math, it's an average of $477,272 / year / starting player.

When you have STR like airBNB or VRBO DSCR does allow that income unless you can provide a previous 12 month rents received or a print out from VRBO.The alternative to that is if the lender or UW will allow the appraisal to use MTR/STR income/rent schedule if the rents and property is common to the area in terms of rent available for the apprasier to show proof.My advice to you is make sure you do your home work and deal with a seasoned Banker or Loan officer that funds multiple DSCR loans per month. 

Definitely a good question that would require a little more homework and guideline digging to know for sure.

22% CoC ReturnCash Invested $230K  You made $50,600 in returnBut the sale price is $275KThe math isn't adding up.If you take $275K less that take home profit of $50600.