(Roof, windows, doors, HVAC)- large fenced in backyard - 2 car driveway in a location where driveway is not common- Overall, interior is up to date and property is in a good condition and area.How would one should approach this to make it work for both parties?

If the lease is still in force you may not be able to just drop it, unless all parties agree. 

Payments for rehab are paid by the lender to the customer as 2-party checks (made payable to the borrower and contractor).

I'd say the most frustrating part is we tend to run into title issues more often with the low priced, off market deals.  

Also, someone said you can't outsource the management of the property to a 3rd party and I disagree with that.

That would be a deal killer.Talk with all parties involved.

Nevertheless, I see that properties in the areas I'm looking for being sold that fall within my criteria every single day.Moreover, a few properties got under contract before my realtor was able to reach out to the selling parties.

I am a residential investor located in Edmonton, Alberta Canada and I am trying to explore options for third party financing.

Just 4 years ago no one would touch Schenectady with a 100 foot pole but so much has happened in the last 4 years since the Casino.

To make a long story short, I am using my rental income to purchase a new home that we will be living in and was prequalified with no issues (mortgage company hired third party firm to look at my rental income and returns to qualify my income, I gave them every document on earth, leases, taxes, insurance, mortgages, etc...) and then underwriting says no due to the fact that the last 2 years of tax returns (2017, 2018) I reinvested all my money into my rentals and they are deducting all that out of my income, ie. depreciation, capital improvements, supplies, repairs, utilities, maintenance etc...