One approach is to look for 2-beds that are larger than normal and find a way to add a third bedroom.

If you are buying owners title insurance, and there are no specific exceptions that you do not understand fully, and the life tenants as well as the remaindermen were parties to and noticed of the foreclosure, none of this should concern you.

Would you say that part is on point as far as strategy goes? 

It would be easy to place the second property in a LLC by quick claim deeding the property to the LLC prior to refinancing for our third property but the first would require a little more legal finesse.

I will check on the APN for the third property. 

Or should I find my own 3rd party company to do it?

A partner of mine is investing in the Houston real estate market (5 units and up) and is asking me to join the party.

@Julia Amelyan The terms of lease are typically in force until the lease expires or the parties agree to mutually amend or end it...interesting scenario...do the lease terms call for an increase in rent for the land?...

I am a huge advocate for investors utilizing third party agencies or services. 

As crazy as it is to see Philly on the list twice, the crazier part is how much room there still is for improvement.