The issue now is that I'm not sure if I bid on a second mortgage or if there are multiple mortgages on the property.

I urge you to champion legislation that addresses these critical issues.

Once recorded, the owner/seller of the property will not be able to close on the property without addressing this issue, thereby blocking them from cutting you out and selling to another party.Other than that, keep in mind it is VERY difficult to win in court for specific performance to force the seller to sell.Good luck, and keep moving forward!

I have a year to continue to try contacting the owner for a purchase -- I could even get myself to Ohio and knock on their door and force the issue! 

Often the borrower/buyer will pay for a title insurance policy to insure against title issues or flaws, but it's usually a rider to a standard title insurance policy the seller typically pays for.

This issue is coming every year, and a few tax pros I have talked to are not doing a good job explaining it.Can someone shed some light on this?

I am currently running into issues with finding lenders due to me still being in college and having a lack of proof of income.

So I don't want to continue depreciation it, but it's not technically a disposition. 

Maintenance issue/slow leak?  

Specifically, I'm looking for neighborhoods with a good amount of distressed 3+ bedroom townhomes for sale for $120k or less that require a moderate amount of renovation (no gut jobs or major structural issues) and that will get me a rent-to-price ratio of 1% or higher on the final ARV.Thanks in advance for any thoughts/ideas/suggestions!