They want to make sure you have something to lose(down payment).

The alternative to a short sale is losing their home and getting hit with a foreclosure and the bank possibly coming after them for the full amount of the deficiency amount.In a short sale, that can all be negotiated.

In fact be prepared to lose money on marketing.

The only down side is I will have to put the money into it, and if I want to move into another investment property in the next 2 years, will I have the money to do it after investing in this property.Conversely, I found another property, more in the area I want to be, but the owner wants too much for it (about $35,000 too high) and has indicated this is his retirement money property so he doesn't think he'll take much less..I know the unit I like, has had 3 showings in the last 3 days and I don't want to lose it.

It's losing population, and job growth is projected at -4%.

There are experts who will help you with this.Then make absolutely sure, that your lenders to not loose money... because losing a friend is worse than losing money.Good luck.

As an agent, i cant solicit someone if they are working with another agent.have you ever heard of someone losing their license by doing this?

I don't want my payments to go up until I can find another investment property to replace the income I am going to be losing.

Luckily I was planning on renovating this unit, plus I didn't lose rent for a vacany due to him paying the last two months of his lease.  

You should contact a local eviction attorney that specializes in Santa Clara CountyIt might cost you $1000-15000 but every day you wait (or if you use the wrong type of notice and might need to start over) is money you are losing in rent moneyEvery city/county is different when it comes to types of notices that need to be given.