The sellers either cannot wait through traditional timelines, their property is of very low value, or the property has major defects that make selling it and earning a 3% commission a money-losing endeavor.

If you need the capital from a rental for a primary home purchase and you wanted to side step cap gains, then the approach would be to refinance the rental not sell it. 

So, assuming that's not what you're looking for, logically that leads to you offering to list properties of PMC clients that want to sell.

Profit is projected to be $20k, but I also learned how to qualify better.Yesterday, we reviewed a profit that my realtor was touting as having a potential of $100k; when I did my own numbers, I came up closer to $40k if it can sell.

I could just sell it and do a 1031 to avoid capital gainsBut it is not so simple to just "sell it" I have a solid tenant and they are paying $3.6k/month, haven't missed a single payment and they are so sweet.

If i purchase this HOA/COA lien i am wondering what are my options when it comes to the mortgage. i know there are 4 options for sure1) Notify the lender of the situation and payoff the mortgage2) Don't do anything, rent it out and let it get foreclosed on3) Flip the property quickly as possible before it gets foreclosed on (the mortgage will get paid off)4) Sell the property as is at a slight discount to recent comps (the mortgage will get paid off)This is the one I'm not so sure about5) Notify the lender of the situation and let me continue making the payments on the mortgage for a long term rental playmy question is, is #5 doable?

Like contacting the realtors involved in those sales and finding out some pertinent info that caused them to sell below market value.

& put a modular built home on the lot and sell it.

You risk making a headache for yourself if you ever want to sell this house in the future, if an upset tenant wants to report you to the city, or any number of other scenarios.

Second, identify the type of tenant you'd like to rent to that will be commensurate to that life (ex. responsible graduate students).