However, some buyers might want tenant occupied properties if they intent to rent it out. 

Thanks @Russell Brazil.But to clarify my question, I am asking if investors are permitted to negotiate short sales on a seller's behalf with the intent of purchasing the property once a short sale is approved?

Covers everything of mine, both personal and business activities except for the obvious things like intentional acts.Would your strategy still work if you started branching out into other states? 

@Olga MarquezIf they are flipping properties then that's a little more intentional than just a retiring landlord that's trying to offload a property here and there.

Purchase price: $200,000 Cash invested: $10,000 We bought our first home in 2011 with the intent to rent.

I am considering buying this property with the intention of pulling the permits and convert it into a legal duplex so that I can refi later.

You never had any intention of closing at the contract price, in any instance.

My intent would be to buy and hold and since I don’t have a lot of cash, to use seller financing.

Even if the lease was not intentionally renewed, the original terms would likely still apply.

I've always bought my primary homes with the intent to move after a few years and rent it out.