(a) A landlord shall disclose to a tenant, or to any government official or employee acting in an official capacity, according to this subchapter:(1) the name and either a street or post office box address of the holder of record title, according to the deed records in the county clerk's office, of the dwelling rented by the tenant or inquired about by the government official or employee acting in an official capacity; and

There can be the 2nd lien holder behind the 1st lien holder.

You would put up the down payment and the majority holder would obtain financing for the purchase and rehab. 

Once all lien holders are paid any surplus funds would need to be claimed by the owner. 

@Mike Hendrickson so if, as a RE license holder, your supposed to uphold your client's (the seller) best interest, how would you reconcile getting the most money for your client, with not listing it to get the most exposure, and therefore, the highest price?

More importantly with section 8 voucher holders, do your detailed background check, including national criminal, Megan's law, Terrorist watchlist, previous evictions, and so on.  

Anyone else trying to do it from a far or from CA specifically is going to get killed over the long run Great idea having a PM as your partner or share holder.

The website you linked to said that prior liens like mortgages are wiped out but prior lien holders may not recognize that and you may have to defend against them. 

If you do this, you should clear it with the note holder and if they say no …Hopefully this answers the first two questions.Now, while you are exactly right to consider a small MFR in lieu of SFR, am not sure this is the right deal.

I am cash out refinancing an investment property.The cash-out-refi bank that I'm going with came back with a pay off loan estimate about $5000 higher than what I'm pretty sure I owe.I contacted the mortgage holder and got my own pay-off letter showing I owe $128k on the property.This cash-out-refi bank produced closing documents stating the payoff is $133k.I asked about it and they changed the numbers back to $128k without explanation.Is this common?