(A recorded trustee's deed (or similar alternative) confirming the amount paid by the grantee to trustee may be substituted for a settlement statement if a settlement statement was not provided to the purchaser at time of sale.)The preliminary title search or report must confirm that there are no existing liens on the subject property.The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property).If the source of funds used to acquire the property was an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property), the settlement statement for the refinance transaction must reflect that all cash-out proceeds be used to pay off or pay down, as applicable, the loan used to purchase the property.

They exist, but they are rare, and usually in rough parts of town. * That said - housing is MUCH more affordable here than in Cali.

the roof needs a complete overhaul due to sagging, sinking, and the shingles have no more asphalt on them to protect against the weather. 

What the OP has done IMO is create a situation where none existed before.

One big issue standing in my way is he has a mortgage on the property and I have not really seen the process of a lease option being done with a house that has an existing mortgage.

Hi All!I’ve got a brother currently under contract purchasing a foreclosure property in the small town we grew up in. The property is owned by Bank of America and has a fixer upper home in the front with a mobile home...

The best bet is to 'follow the bread crumbs' from existing connections. 

Google their names, does this Ark Encounter Conference really exist? 

You are correct the market here is saturated so you need to educate yourself on the market and build a strong team here.

I would see no issue with renting out the master bedroom and moving on; I've never had a problem doing that as long as you find someone who can get along with your existing roommates.