A transfer to a trust is exempt from due on sale violations since banks will view transfers to a trust as an estate planning tool.

Just because most action sellers don't bother to complete the proper disclosure documentation (and most buyers don't ask for it) doesn't mean that they aren't required to.Note that plenty of sales (regardless of auction status or whether its an as-is sale) are exempt, but because they fall under foreclosure or tax sale exemptions, not by virtue of the fact that it is an auction/as-is sale.  

The process has been held up because of two collections on my credit report for a $100 internet bill I forgot to pay when I moved out of state two years ago, and very small medical bill that I also forgot to pay.

A new medical or law school opening provides an opportunity for more long-term tenants who sleep, study, repeat - and pay on time. 

It also depends on why they are behind-did they change jobs, have a medical problem and took time off work or are they just not good at handling their money?  

He gutted a house in Camden, NJ where we planned to live then we decided to sell it to get money for him to go to medical school.My husband and I are still trying to clarify our goals for investing.

One thing I have done in the last as well is ask the tenant to have their medical provider/doctor/etc., send the documentation regarding the ESA to me directly. 9/10 I never receive anything because they only have fake online certification.

What about the 121 exemption if I purchase it under single member LLC?

Do not sign an assignable contract until you have had the opportunity to investigate the true value of your property and the legal implications with an attorney.Take responsibility for being informed about the value of your property and the contracts that you areconsidering signing.Distressed Rescue TransactionsInvestors and real estate brokers are approaching distressed homeowners (those behind in their payments, facing foreclosure, or experiencing a medical issue).

@John ReedA solo 401(k), as a tax-exempt entity, does have exposure to two forms of taxation.