Furthermore, the only investor clients I’ve worked with have purchased cash and rehabbed with cash Wondering how, if possible, to start the process into searching for these types of properties and getting a “leg up” into obtaining them.

I'm searching for a real estate agent in Austin TX that would be able to help me find single family properties with separate living quarters, mother-in-law, or generational suites that could rented out while owner occupied.Thanks!

1- Secure contract with purchase price and terms2- Send contract to title (search and insure)3- Draft note and mortgage (you'll need a lawyer to do this- less than $500 likely)3- Seller uses proceeds (your down payment) to pay-off  the lien (The title company will handle all this)4- Close the transaction5- Establish payments to sellerYou'll want to make sure there will not be a delay between the payoff of the 1st lien- executing the "lien release" and closing your transaction- will require coordination.

If nothing else, it would show the tenant you are taking their concerns seriously.I would also do a search on the property history;   it's very possible the tenants did this as well, and uncovered something disturbing about the house that is the root of this.  

Still has some a few items in the house and boxes and furniture in garage.  

Better interest rate and stuff, too.This is zoned, was priced, sold, financed, advertised on MLS (meaning you wouldn't see it if you limited your search to multifam), etc, as a single family home (old pic from google street view, I blacked out the single street address)... we had to do some property specific stuff prior to the appraisal. 

(Search the forums for that recent discussion.)

For most counties, that will take you to a site where you can do property record searches.

He also feels that I went behind his back by talking to the realtors and searching the numbers. 

Go to your county website and search for information on tax sale or property taxes.