The only danger is the banks due on sale clause so make sure you can qualify to fiance a new mortgage @Brian Gibbons is an expert on subject 2 transactions and he can further help you Good luck

I won't say they don't exist, because I know several that are appropriately licensed and can make these loans, but they tend to specialize in lending to well-qualified borrowers that the banks won't touch.

Not able to qualify for a mortgageThe list goes on and on.

Once we considered a DUI, but ended up having two other very qualified people finish their application first, so it wasn't an issue.

Not an easy thing to prove, and you would likely need a Creditor's attorney to represent you at what is called an "adversarial proceeding".Otherwise, as long as a person qualifies for bankruptcy, they can torpedo your collections efforts as they wish.

So talk to a couple bankers / mortgage brokers and see what they would want to see in order to qualify this property for a loan.Also what type of fix-up / rehab do the units need?

The Short Sale itself could be enough of an incentive for the seller or occupant to complete the transaction as they could get a Relocation incentive from HAFA ( If they qualify ).Whats the Amount owed on the 1st?

Once you are well-qualified, you'll find agents are more willing to spend their time with you.We also look for people who are willing to make reasonable offers on homes.  

Based on the numbers you provided alone, if you could get the property appraised at your ARV ($105k) and qualify for 80% LTV at 5% for 30 years, you'd get $84k with a monthly payment of $235/mo.

(Is there a pool of qualified tenants for properties or is everyone scraping by to pay rent?)