If they see you $500k rental wholly owned free and clear they'd be more inclined to proceed even without up-front fees.  

If you know the bank you can try a call to the asset manager, don't hold your breath, they will be listing it.Banks are required to list REOs, one of the reasons is to cut out the chance of someone in the bank cutting a brother-in-law deal and selling below market cheating the borrower from any equity that may be due from proceeds of a sale.

Once you have this, recalculate profitability and only proceed with the purchase if it makes sense.

I asked the current landlord and she said she wasn't sure why that would be.How would you proceed this situation where the name doesn't match?

They simply recalculate the total portfolio LTV and if I get above the stated % they make me "buy down" the loan, meaning I have to use the portion of the proceeds of the sale to pay down the loan to get to my stated %.Is there anything I need to be mindful/aware of that is often missed when trying to sell either property #1 or #2 in this situation?

You can always negotiate a holdover attorney escrow for 30 or 60 days at closing for if things pop up that the seller said weren't true you can get the escrow money as damages from sellers specified proceeds that were held back at closing.Sellers will say anything to get a place sold and feel they have no further obligation once it closes.You might have recourse against the seller in this situation.

These companies tend to be very strong and the lease guarantee whether they make a profit or not insales keeps them paying the lease.The only way I would touch an apartment building again is if it was 100 units or more and a quality tenant and area.So again I would hop on the phone and talk to various people so you can get a clearer direction of how you might want to proceed. 

If you are skeptical about debt and there are tens of thousands of investors who lost everything because of Debt so there is a good reason to be, then flipping 3-4 and buying one with the proceeds can be a great strategy.    

I would like advice on how to proceed, if this would be worth any further time.This is a FSBO single family, 6 br, 1 bath. 1st floor is kitchen, living, dining. 2nd floor is 1 bath, 4 bedroom.

They are slowest to rent and sale plus the turnover rate is highest.There's of course a lot of variables but that's a simplistic explanation of how I would proceed based on my market.