As far as the sale of a property with a mortgage on it, that all gets sorted out at close. ie, you bring your money, the bank gets what they have coming, the realtor gets what they have coming (if there's one involved) and the seller gets the rest.

Cody,If you want to work with a bank or lender to build on a piece of vacant land you will need to be on title of the land for at least 6 months.

This is one of the main reasons that HUD deals fail to close.  

@Jamie Banks may be able to help - do you know anyone who does MTR in the same house?

Qualified applicants that get priced out of rapidly improving neighborhoods will move into these areas but it seems like they aren’t biting.High quality, lower income applicants aren’t stupid and they won’t settle.If you think this area is a losing proposition, I would think about selling and not banking on hope.In regard to vacancy, I don’t consider any area that has average occupancy (economic and physical) below 95%You might pay more for a better area but time will treat you right and you’ll make a ton of money in equity over the long term.

If there is any kind of damage to the house because of a natural cause if you approach the insurance company without a landlord's insurance they will outright deny your claim.If you have a mortgage the bank will insist that you have landlord insuranceTenant has renter's insurance.

The seller becomes the bank and pays capital gains one time on the downpayment (which keeps it low to make sense for them) and then also monthly on the payments (also incentivized to just match how much he wants a month).

As expected the banks I've talked to thus far (that I have great relationships with) are skeptical about funding.

For almost any kind of permanent rental/investment property financing (whether Conventional, DSCR, or local bank), you are going to need a decent credit score to qualify.

Someone with $10M in the bank in cash just needs to put a lot of money to work and time value and tax write off is more interesting to them than a hungry investor in their 20s that has never found a deal.Honestly, books are great, but they are about as "boiler plate" as you can get as I'm sure you're discovering.