The note was non-performing so the bank sold the note off likely at a good discount.

People can say what they want I've negotiated down to $5,000 for a non-performing assets. 

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

Perform your due diligence as always. 

That would be far cheaper than not being able to perform and ending up in a lawsuit. 

The option is in effect only as long as the lease is performing.  

In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? 

When I do modifications, I usually like to set up a tax escrow as part of it, but the additional servicing cost and the borrowers past performance in paying taxes without escrow has to be considered. 

These deals were strong performers and I felt like they were my base.I had quite a bit of money remaining so I put some away and put some towards a 108 unit deal in Houston. 

I made contact, (I thought) with the correct person handling their non-performing assets.