They do this with mold a lot, even though the odds of developing some sort of health problem from 5 minutes of walking through a house with mold is basically zero.

You're not going to get an investor loan of any sort with a 5% down payment.If you're trying to buy junky properties that aren't going to pass muster for a conventional lender you need to like up some other resource. 

Sadly it will be next to impossible for you to obtain any sort of conventional bank financing. 

If they have to be 4,000 sq ft then no the deal is not all that great but if they are less than 3,000 then of course it a nice deal that I am sure a builder would pick up as long as there is no other hair on it like Karen suggests or that the market won't really support it because of neighborhing influences like Mark Suggest...

There are plenty of properties around my own neighborhood for sale, but thing is that business like Coldwell Banker and others of the sort own many of them available while I have only found 2 for sale by owner.

That can be a lot to sort through.

This  is your best option since you "sort of forgot about it".

(The one I like to use is part of a lawyer firm, and is fantastic at sorting legal issues out)

So, under that idea, it is sort of a make sense decision to transfer with Warranty Deed for your purpose.  

Sure you can buy all sorts of worthless paper for pennies on the dollar its that old adage a fool will soon be parted from his money.Not bizz takes some education and knowledge to get into and do right..