Alexis,I am in precisely the same situation as you.

So my question is has anyone been in such a situation that has ideas about a win win for myself and the homeowner purchase right.

So, I don't really have a question per se, but any thoughts, tips, etc. on this situation would be very much appreciated.  

Then, jump on your property manager for allowing this situation to happen.  

Most towns, I believe, have protocol for that situation, too--go down to your local planning office and ask about thatI think some time spent down at your local planning office with a well thought-out list of questions will help give you the answers you need to make a decision with confidence.  

Renting the house in Berkeley can, as you said, put you in a potentially challenging situation with tenants when you decide it's time to sell.

You don't know everyone's situation.

Looking at listing may not need full rehab, new roof and water heater done, 3br in neighbor run 900 to 1000, rehab for low maintenance, try to buy as low as you can , look at comps, probably could go in as low as 38-42 with good agent and stress as is, maybe a few agents here to help, get one to give you good numbers not listing agent numbers , street is a nice one for area, not much back yard or parking but nice front, before you close make sure vacant  contingent, if numbers work I would do it, the are predicting an abundance of rentals avail next year with building craze but keeping expense low you should be safe, remember don't rehab as if you are living there, think durable and repaintable, number should go into systems and structure first, elect,heat,walls, windows,floors,plumbing, if you use a contractor go with one you know or work with someone in area to keep an eye on progress, good luck at least you know some of the history of the property

In a similar situation myself.

Jared can u assist me with my situation concerning the proof of funds and a good hard money lender for the funds who will use the home's in the contract as collateral I'm also looking for a good agent who is willing to make bulk offers to the bank