Even if this deal doesn't work out, I still have a problem because it sounds like I can't get a deal financed not matter what unless it was around $20,000 or less.

This is a good "wake up call" for those that are looking to get into the low income rentals business.These are very maintenance intensive rentals and you don't get the benefit of the cash flow without having to deal with these types of people.Chris

I work out of Garland and just started professionally in the past few months.

They can be harder to rent and have a higher vacancy rate and maintenance cost.They also tend to be very management intensive so you need to do it yourself or be willing to sort through the haystack to find the needle.Quality management is absolutely essential to be successful with these types of properties.You either need to know your investment area like the back of your hand or find someone else who does, stay out of war zones and cherry pick the others street by street and block by block.Don't purchase to many to fast.Stick your toe in first and check the waters before you jump in with both feet.

I can only hope things work out for you in the future as now is the time to handle the immediate things facing you today.

He has been working with the lender in order to get the property sold (short sale) or work out a Deed in Lieu of Foreclosure.

Tell them that you want to work out a solution that's good for everyone.

Just make sure you work out a good agreement with your investor spelling out who gets what share of the profit and who covers what share of the expenses.

If I (buyer) work with an agent with whom I have NOT signed any contract, is the agent free to approach the seller and work out some arrangement....in other words, the agent makes money from me (buyer) AND the seller?

Not all of these are going to work out as Short Sales (which is why you need to learn), some could be great as a Subject To, others could become Lease Options or the seller could carry back a note and you could get in for little to nothing out of your pocket.