I'm also interested in creative financing to reduce our cost to leverage our money.

Not other peoples deals, not mythical bulk reo deals just your own direct to seller deals.

Prior to 1 year they will only use the most recent purchase price, meaning you would still have to keep 20% in until 1 year.I have heard that some smaller banks will reduce this to 6 months, but I have not found one yet...

While working for him, I always wanted to be the guy who came by just to check and see if the job was done, and made the bulk of the money.When I finally felt I had a chance to be that investor, I read everything on the internet I could find about flipping houses.

The primary, if not only, reason there has been a brief spike in subsidized demand for housing in recent months (2012), has been the GSE/FHFA endorsed REO-To-Rental plan, and associated securitization conduits, in which large asset managers have been encouraged to take advantage of government funded, risk-free financing (and entirely bypassing banks who have given up on loan origination due to legacy liability issues which have every bank tied up in litigation from now until Feddom come - just see today's Bank of America results) and purchase foreclosed properties in bulk, with the intention of converting them into rental properties.http://www.zerohedge.com/news/2012-10-17/och-ziff-calls-top-reo-rental-exit-landlord-businessIt is no secret that in addition to the well-known phenomenon of "foreclosure stuffing", one of the primary drivers of the artificial housing "recovery" has been the surge of hedge funds and asset managers into purchases of rental units courtesy of near-zero cost REO-to-rent federal lending facilities, which have taken out distressed inventory from the market in hopes of converting it into rental.

I would think that the person who bought it would see the value in staying put.I am reducing the value of the business because I want to sell it quickly, but I want to keep the building occupied and making money on the rents.How would I structure a deal that keeps them in the building?

This is an estate planning measure to reduce taxes and facilitate an easy property transfer in the event of a death.Also, on REO properties, 99.9% of banks will not accept offers on these properties until they are listed with a real estate agent.

Also, time is a great motivator, the seller has already reduced the price multiple times and a lower offer of $125k may just fly.

Now, I just have to find some tax strategies that help reduce active income tax liabilities.

I should also note that the GC reduced his profit margin to less than 10% on this particular bill, which offset the use of the contingency fund.