This has always been language added after agreeing to terms.I think it would be hard to wholesale an REO, if possible, in certain situations.

@Bradley Bladon that makes sense so then why pay extra taxes in certain situations with an LLC?

@Khristian Guillory ......Looks like a good situation to be in.

To some degree I'm encountering a similar situation: having a real estate license and finding a broker that will permit me to wholesale real estate.

Also in your situation I would definitely go with FHA on this especially if your plans are to live it at least a year with the exception of the FHA guidelines.

Alternatively I was thinking to avoid getting in the middle of that confusing situation just using 2) a straight option. ..as these sellers can sit on these properties as they already have tenants.

Hey William, I would like to know how you ended up going with the oil pump situation you had.

You can't do a subject to on a short sale ( that doesn't make sense. ) You can do a subject to on an underwater property, this may make sense in limited situations. 

I found @Ken Rishes's information very interesting if not timely to my particular situation.

Pretty crummy tenant situation on my hands.