In response to Mr Ramsey's quote, assuming I'm understanding it correctly and it's meant to be "sail" not "sale" (if it is "sale" it may be some sort of play on words that's going over my head), I think the partners that started companies like Edison Electric, Warner Bros, Hewlett-Packard, McDonald’s, Microsoft, Apple and Google might have a few things to say.  

In my studies I've learned that these large corporations create dozens upon hundreds of subsidiary companies to bid in a sort of umbrella fashion, doing so by flooding the auction site with bids to ensure success, and in turn bidding down the percentage rate (it doesn't matter that they are getting .25% return, because they bought 800 at a time type mentality).   

They are a sort of hybrid rental turnkey/ property management company with realtors and renovators.

@Jay What sort of numbers did you put in front of the HMLs that you tried already?

I know there are new rules for payment processing that requires them to do some sort of reporting.I would think just document everything and if something should come up you can show that your sister reported the income and you are just managing it.

The seller said they would be willing to talk about seller financing but would need some sort of down money, and I told them that was fine as long as we could come up with some numbers that work for both of us.

Yes, we are in business to make money, but our primary goal is to offer solutions to that seller and if you are prepared to present them more than one possible solution, even if that means being more creative, you will be able to convert more leads, than if you are sifting and sorting thru motivated leads, looking only for those that have a clear titles.

Its just a promise to pay, and if they loose their job, or a leg, or a spouse, or any other reason, it could force them to stop paying, and if they can't start repaying, ultimately you would need to get a Deed-In-Lieu, or foreclose.Also, not to split hairs, when you buy the note, you are not the lender, you are just the note owner who receives all future payments; you never lent any money.

I know I need to run this like a business, and normally would hold them to the lease, but this is sort of a unique situation as you can tell.  

My understanding is you can get lists sorted by that as well.