The work on the house is minimal as it had a military family as tenants about a month ago but they were redeployed so had to move out.The owner is going to let the house go into foreclosure due to a personal bankruptcy and moving out of state so he needs to dump the property as he owes about approximately 200k on it.

reason for this question is i am looking to start small, plus what i could afford would not have a high turn over rate....2) i am attempting to work things out with crediters, but i am starting to beleave that bankruptcy is the way to go?

EVERY full-time professional apartment investor I know has said time and again that an investor new to commercial multifamily should start off with no more than 12 units.As others have mentioned, it is a more complex vehicle than your average SFR and ONE mistake could put you into foreclosure or bankruptcy.

Usually taxes and credit will not disqualify a borrower unless there are multiple bankruptcy, foreclosures, or fraud/criminal activity. 

I've emailed lawyers representing people in bankruptcy and trustees of the bankruptcy try to see how quickly I can get an offer in to someone authorized to accept it.

@Julian Buick@David FaulknerReasons an individual  note holder might sell a $20,000 UPB for $12,000 right now:Death, illness/medical bills, qualifying for government benefits, nursing home costs, bankruptcy, divorce, law suits, business needs, their grandchild gets arrested for drugs and needs an attorney, they may have 90 days to move granny into their home and must remodel accommodations, they may be tired of collections and the tax headaches and servicing.

Now, he is going under FAST and might be forced to file bankruptcy.

The tenant threw in a bankruptcy thing and I had to pay the attorney another 550.

The requierement is that the buyer has to have great credit, nothing bad in the credit at all: no foreclosures, short sales or bankruptcy in the past.

I am afraid of partnerships because usually one partner can bind the others.There are many options, buyouts, file bankruptcy reorganization, get court injunctions or court appointed receivers, post a superseadas bond to get an injunction.