If he doesn't use the money to pay the IRS, your investment will be the loan + The cost to foreclose and possibly the IRS debt. 

I'm here on biggerpockets to meet new people, advice, and possible private lenders for flipping homes. 

Email us some dates and times that you're available (preferably after 5 if possible) so we can talk.

If we raise the rents to the average rents in the area it could possibly net annually $85,000.  

Chances are, you will never have any appreciation in that area, and will possibly have negative valuations in the future, so you'll need cash flows (matching those CAP rates) to make the investment make sense.  

I am going to look at some other lending options, possibly even look at some house hacking with a fha loan.

The listing agent says they had an offer but the financing fell through.I am wondering if financing this property with bank financing would be possible? 

If you're sending the same mailer as your competition, you can expect a lower than possible response rate.  

We have had some people tell us to get our real estate licenses, and possibly work for a real estate company to gain experience.

This is what I sent them:Offer is for a purchase price of $128,000APR RATE at 4% on 30 year fixedTotal cost of mortgage to us $219,993 Monthly schedule payments of $611Since they bought it for $36,000 back in the 70s, I figure there was a chance they probably refi or something, which I got a reply from them that yes they do have a mortgage on it and that yes they are interested in learning more about the possibility of selling it as Owner financing.So from what I picked up of all the threads is that LO or Sub2 is the way to go, I welcome you to take this post and chop it up.