Purchase price: $240,000 Cash invested: $60,000 I purchased this duplex in distressed condition using owner financing for $240K and secured a $60K hard money loan for renovations.

I agree with many of @Alan Asriants' points, especially when considering OOS Sec. 8 investing.A lower price point or smaller investment doesn't always mean low risk.House-hacking locally could be a better transition depending on your goals and situation.

Also seems like a lot of MF sells occupied with tenants in place so you just have to comfortable with that and contracting up from and seeing inside after contracting.    1st step is to find a great lender and get pre-approved for a loan so you know what your budget is. 

I am not sure how to handle this situation?

Also add if you are getting any type of loan on the properties a Wyoming LLC will not make you anonymous as you will need to sign the mortgage in your name: 

Hi Chris, I don't have any context regarding the seller's situation so no comment on the land trust.

this is regardless of furnished or not.if you do not get rid of the tenant, the situation will degrade.  

I want to be able to do a cash deal to get a lower price and avoid all the cost that go along with a lot loan, fees, points, etc.

If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

If you need any help with the financing, Aslan is beginning to offer the Chattel loan very soon which could be a great help.