I've been trying to buy SFH homes in these areas for anywhere between 90 - 100 per/sqft and renovating them for a total of 140 per/sqft when finished. 400 - 500 sq ft units in my HUMBLE opinion are EXTREMELY small and are much harder to fill with longer term tenants than say 700 - 1000 sq ft units which can accommodate working couples and families.  

To begin to understand the Seller in a pre-foreclosure situation, you have to adjust your midset to accommodate for the items you mentioned....job loss, loss of savings, stress of foreclosure, uncertainty for the future, questions of where to go now.Most Sellers shut completely down, and it paralyzes their actions. 

You can buy an office building with enough space to accommodate your company.

We'll have accommodations and no debt and wont have a problem finding jobs in the meantime as we are both professionals. 

I can definitely see how many investors who own a lot of units would interested in hiring out maintenance only, and then at some point hiring out full service so I'd like to try to accommodate this need.

3 problems: 1) The fact that just 4 months in and she’s late 2) the fact she has to “scrap up “ the rent . 3) she knows the agreement and is asking you to change it to accommodate her . 

.- If you have a motivated seller or a kind relative or anyone willing to fund the loan for a second position, then some HMLs can accommodate a second position. - There are also numerous threads, guides and webinars here on BP with subjects along the lines of "No Money Down" and "Using other people's money".Q.

I also do like to accommodate tenants when possible.

Because of their nature, the FHA loans are inherently risky (high loan to value, inexperienced borrowers, liberal income guidelines) and because they are riskier than say a regular conventional loan at 80% ltv, the mortgage insurance is higher (significantly higher) and doesn't go away like it used to.On the other hand, for a first house that will accommodate up to 4 units, I say FHA is the way to go if the rents qualify.

I've heard a few horror stories of landlords being accommodating with one tenant and getting sued by a different tenant when they failed to offer the same accommodations to the second tenant.For example if you gave tenant 1 (the tenant who wants to leave) a discount to have them stay and the tenant 2 found out about the discount, they could also ask for a discount and if the landlord said no it could open the landlord up to a discrimination lawsuit.I could be wrong I'm not a legal professional and I'm a rookie investor at best but these may be things to consider.