No complaints so far.Try to stay more on the north side as crimes are less there.It kind of a risk reward type situation. 

Details:Outstanding loan amount on the home is $187kPreviously listed for sale this year at $250kArea comps are around $300k and rents around $2000/moPhotos in sale listing show a mild hoarding situation and listing says house needs some workMy main question is, in a sale like this, if the outstanding loan balance is $187k, is that all the mortgage company is concerned with or are they looking to make as much as possible?

They most likely won't allow as high leverage as FHA in (1), but they'll be used to "unique" situations.

Do lenders standardly do short sale in the situation owner has passed?

Unfortunately it's not that easy, IRR is discount rate that makes the net present value (NPV) of all cash flows from your deal equal to zero.I would only use it in a situation where you are looking at two deals and all other factors are the same (which is almost never the case).Or if you are looking at deals with a IRR of 15% to 20% and you run across a deal that says they are estimating a 10% IRR then that's not going to work and you can eliminate it.

I have used this strategy in various situations, but most of the time, if the seller is willing to do it, then I will set it up with owner financing because the terms of the loan and the deal are usually more favorable to me than if I were to get some other form of financing. 

I’m sure there is a ton of holes in my situation that you all will point out.

hey @Shaun Morgan , I don't have too much experience in this field so DEFINITELY take my opinion with a pound of salt, but from my education in entrepreneurship and from what research on the topic I have done, when it comes to private investors it is less about what info you bring to the table on the first visit and more so how you approach the situation.

I am not trying to sway your decision, only you know what's best for your situation, just that if you are driven to use all of the equity, that feeling may not go away once you move it.

I would be going into the situation hoping that it will not appraise because I already "know " or assume I over bid.My realtor claims that if it does appraises to the high offer price, at least I will be reassured that it is worth that price.I'm just not sure if this is a smart way to go about this, but with bidding wars and low inventory I need to figure out what to do gain a desirable home.