One thing I would caution you is not to restrict yourself to yellow letters.  

Property Value $200K, Current Conventional Loan $83KWith a 75% LTV I should be able to take out $67K to repeat.Recent Update to the Fannie Rules:  eligibility restrictions for DU loan casefiles and manually underwritten loans related to LTV, CLTV, and HCLTV and cash-out refinances have been removed, and are now aligned with standard eligibility.https://www.fanniemae.com/content/announcement/sel1603.pdf

There are some restriction to seller financing (disclosures) and sale of owner-occupied residential property in foreclosure.Essentially, this woman ought to being trying to salvage some of her remaining equity and credit.I started working Foreclosures in 1978 and most will do too little and too late to salvage much. 

Study up on the different zoning regulations/restrictions for each zone at: http://handbook.dcoz.dc.gov/That should help you better understand the MUs as well as identify which zones will allow 4 units.

Also, I know there is a time restriction in how often you can get FHA loans for an individual, even if you pay the current one off.  

I just bring those details up since some people have restrictions such as kids or other issues which restrict them to nicer neighborhoods.

You can watch it til the six months is up, and keep contact with the listing agent, to be ready when it comes off the six month restriction, if it doesn't sell before then.

(B) A private sale shall be for not less than the appraised value thereof.For those of you who market for probate leads, are there similar restrictions in your state laws?  

Fair Housing Regs says the LL can not restrict the forms of payments and must take whatever is offered.I'm a remote LL and thus Cash is impractical - - you have the same thing when the payment address is a PO Box.With every lease agreement, I include a page suggesting the use of Popmoney.com

Where it gets confusing is that the guildelines also state that each bank can be more restrictive on these rules if they want to but not less restrictive.