He has a few potential buyers going out to see it soon so I'm hoping someone he can find a buyer for it. 

By targeting properties with value-add potential (ADUs, duplex conversions, rent-by-room setups, etc.), we’ve helped investors get much closer to breakeven.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

I wasn't really sure how it would pop up, but don't see a reason to risk things and complicate my cash-out.

If this is your first real estate purchase I would stay away from auctions, there's too much risk involved especially with where price points are in your market.

Our attorney told me just return the money as the brain damage of going to court and potentially losing (court is really just rolling the dice - small claims court is not about justice and the law but what the "judge" thinks is "fair") is not worth the possible gain.We always sign a lease and any funds paid are first applied to rent and the SD is collected last.

Banks really don't understand crypto, and the ones that do hate it because it POTENTIALLY puts t hem out of a job. 

There are multiple potential strategies it's just really going to depend on your personal situation. 

I only qualify for about $500,000 with my W-2 income.Without getting a private investor, is there anyway I can prove previous rental income in order to use the potential rental income to qualify for the loan.

In Tennessee, my go-to is Southpoint Risk in Knoxville.