The seller is not willing to amend the lease or do cash for keys.Otherwise the property is in a great location and cash flows well, the biggest risk is carrying on these tenants for about a year.

Hard money is an option, but risky for new investors like me because we lack the experience to adapt in the event there’s something unexpected that happens.

I agree with @Dean Letfus very risky, if you want a cash cow try and find a high yielding office building, will be less risky and not an illegal dwelling.

It seems as if the risk is outweighing the reward.

Entirely too risky...

If you are thinking of flipping, I'd do a cashout refi as this is a risky market and you could get stuck trying to catch the "falling knife". 

Very risky. 

I am very interested in the proposition as these rent levels would yield almost 20% cash on cash return for the property and potentially guarantee me rent with no vacancy for 5 years.

I explained the win-win of their employees not being involved, gave them the inexpensive cost of my proposition, but they always say "We'll get back to you" and then never call back.The area I lived in before had a fair and equitable system where you contacted the state, sent your payment to them and they held it in escrow until the landlord complied.

sub too with not enough capital is risky for the seller  buyer we dont care about if they go into deals underutilized that's there fault or problem.