In the end, the real property would exist be the time bank funds would need to change hands.Thank you!

If you get a ton of people ready to sign a lease then you can talk to the existing tenant and say: "hi I'm Eddie and I'm with the new property Mangement company.

Are there banks or funds who specialize in providing note buyers capital against their existing portfolio?

The landlord/manager and the tenant both sign (in CA at least) and it guarantees the existence of a lease, it's terms, and stops anyone from later claiming any other lease or lease terms exist. 

Deals are tight but they exist and this can be done.  

Any time you buy a property with existing tenants, you should create an estoppel certificate.

Also, to answer your questions:Finding the right property to do this: I'd suggest you continue to look on the MLSWhat to focus on renovation wise when moving in: An area where appreciation is strongLook for value-add | Meaning an addition to the existing structure or a bathroom or finish the basementEnsure that your finishes in the house is suitable for the market and sale price you are hoping to getWatch your budget Any other general advice on how to do this successfully: Add 20% to your budgetHope this helps you guys.

Value add property like this exists everywhere, you just need to find it.

Historic properties should be avoided due to the e extremely restrictive regulations that will drive up any renovation costs.

First check to be sure that your area does not require a license or other regulations to do so.