I see that you specialize in buying non performing notes.

That includes getting paid upfront with a bigger non refundable deposit then getting paid in the middle with monthly lease payments and getting paid in the end when the tenant buyer buys the property from the investor at a higher price than the seller is asking for.

If you can offer more money than they can reasonably get from an auction AND do so in a way that absolves them from showing favoritism, then you may be able to pull it offas a banker myself as far as I know selling assets through a non-bid process is a NO-NO. but I can't speak for all banks.

I have heard most investors say a large non refundable down payment is supposed to somehow offset the risk if and when the other tenant buyer defaults.

The house in question is in Rowland Heights, CA, built in the 80s, renovated 5 years ago, with a swimming pool, about a mile away from schools. 

HUD deals seem to be listed (usually owner occupant, non profit and government agencies for some period of time depending on the "insurability" of it) on the MLS.

The voters of Seattle voted down twice a bond to fund a stadium for $1billion dollars and the city built it anyway out of public money.

So here is my dilemma, I want a non smoking apartment complex. 

So, I started a yellow letter campaign and have sent out about 100 handwritten letters to non-owner occupied properties. 

When they do you're typically talking about non traditional banks, or you're getting into the commercial side of their lending.