Once we 'assume the contract', how does that compare to a typical escrow?  

Since we manage the rental ourselves, we have a clear SOP manual that we review with the tenants upfront to ensure that they are aligned with our processes prior to move-in.Hope this helps,Kyle I.

Is there still hope to negotiate the short sale despite the prior homeowner, who no longer owns the residence, refuses to give me authorization to speak with the bank?

All in all, I would compare the two and see which one works best for you. 

Do you find private lending prior to finding a steal of a deal?

You really need to balance the opportunity cost of the interest you'll save with the returns you can make by investing that $400/month or however much you can scrape together.If you want to get real nerdy, you can download a loan amortization spreadsheet, plug in the extra payments, compare the interest saved each month versus what it'd be if you keep the loan as is, and discount the NPV into today's dollars. 

Any improvements you make need to have a comp available to compare it against. 

You must use the services of a qualified intermediary to handle the exchange and they must be in place prior to the closing of the sale. 

San Antonio is amazingly priced compared to every market and it is flaming hot because of the affordability.

Immediate positive cash flow is importing and a value-add place at a commercial loan location (more than 4 units) will add more value to it and not on a house because of the way cap-rates works versus comparables.