What would be the best direction for me to get the ball rolling?

I don't think your finance numbers are anywhere in the ball park. unless its owner carry.. also keep in mind low end rentals like these will be work to keep maintained and running smooth.. markets price for risk.. low price higher risk.. just a fact of life in the mid west deep south.

The Seller's side came up with the MLO as a strategy to avoid capital gains, so essentially my same terms on a MLO which I am not particularly fond of since 20% is a big chunk for an MLO which put me at risk of loosing it if I don't exercise my option but, I'm fine with it on a purchase because of the terms.

I like thought exercises like this.

I’m looking forward to getting this ball rolling!

Cash Low Ball Offer2.

Hello All,This may be an academic exercise, but I want to learn how to approach contacting heirs of deceased owners of distressed and pre-foreclosure properties.  

You run a pretty good risk for that renter to not exercise the option, so run your numbers based on that happening just so you have a contingency plan.  

Those "bid prices" are irrelevant, low ball "starting bids" which are much, much lower than the undisclosed reserve prices.

And in our market here in PDX in which sellers relate to families this can work pretty good they choose the family they want to live in the home..aS opposed to some wholesaler trying to low ball them and steal their equity LOL