Any other way to deal with a situation like this to prevent from loan getting rejected ?

That way, cash is available in a heartbeat when needed, without paying unnecessary interest on it.  

Again, please don't proceed with the sale with the encroachment; it could prevent you from securing title insurance and the owners could always take legal action to cure.  

Meanwhile the owner has a means to recoup equity while still holding the property.Actually, what you're describing is wholesaling....with the totally unnecessary added twist of paying the seller for the right to wholesale his property

I also think it’s more so to prevent the appearance of foul play, not necessarily fouls playAll that being said, I know many investors don’t use agents.

There has been enough gov bailouts stimulus and laws that are really trying hard to prevent another 08 on the residential markets.

Will anything about owning my current three family prevent me from doing this?

Will the lack of a job prevent me from getting financing on a deal?

@Aristone Louxz I’m sure you can sympathize with the small business owners that are struggling in this economy, they WANT to be able to pay you rent, circumstances are preventing that.

Parts of it can be done with a lot of experience, but don't take any unnecessary chances.