I negotiate with the lender a discounted price for the remaining balance of the loan,once that figure is agreed upon, sell the property to the new buyer.

If I were you, I would look at waiting a bit and saving the remaining funds and make a legititmate down payment. 

You take a fee, either as a flat fee or a percentage of the total transaction; you can charge an ongoing management fee; and, you can receive a portion of any surplus cash flow remaining after you've paid your investors what you promised them in return, and receive some amount of equity in the property as well. 

highly flouridated drinking water, mandatory obamacare/vaccinations, substance dependency, permanent war on 'terror', and media false flags galore all mean we NEED our generous government to survive and remain 'free' meanwhile the balanced 'middle' class are being exterminated from American society altogether.Depend.. or perish!

Water in toledo is actually the larger issue- it must remain in the owned name and with tenants being billed every third month means they never make a partial payment and ignore the $150 bill that comes every three months.

Any payments on the balance remaining from the original loan must be                  included in the debt-to-income ratio calculation for the refinance transaction.                 

I expected to see it for sale after he started getting violations, but he arranged to have the bare minimum work done and it remains vacant waiting for the next violation to come his way. 

So in this example (before the repairs scenario) you would pay the tax on 100K and shelter whatever remaining gain there was.3.

However the secret recipe will remain secret.

If the numbers are strong enough then it may be worth the hassle, but if you are using cash to purchase something you will have to dump the remaining cash in it may be time to cut the ties.