A possible solution: I could do more research on how much and timeframe each part of the house to redo (e.g.

Also, Maryland requires that a Resident Agent be identified for legal service.

The original post IDed a quad (still a 1-4 family from a financing perspective) vs. single family residence (SFR), so not sure if that is important to you or not.

It's a simple solution to a distressed homeownwer, but it seems like there isnt another way unless they are willing to do 'sub to'.

I read IRA pub 523 and my takeaway is that the I do not qualify for the primary residence exception (the '2 years living there in last 5 years' clause) because I didn't live there for 2 years total at any point.

A long-time resident at where I'm now living told me when a previous owner (that went bankrupt) started accepting HUD tenants, "that's when the drugs came in" (I wasn't living here then to be able to confirm this assertion, but I have no reason to doubt it).The same reaction happens in business ("street fighting" and "lifeboat ethics").

There are gurus that teach a 'system' or two;  not being a guru myself, I look to help craft a solution to a particular seller's problem.Keep running the scenarios in your head and on paper to keep them in sharp focus. 

Solution: Only close with an experienced closing attorney and always make the borrower get the lender's title insurance.Your collateral (the property) may be worth less than you think - OK, let's assume you definitely are in first position.

Our savings rate is high but we haven't bought a permanent residence yet.. 1. because our rent is so cheap 2. because we are weighing the options of purchasing a multi-family apartment or something similar 3. because we are a little bit scared of the process.Should we start by purchasing ourselves a home, live in it, fix it up and put it on the rental market or go ahead and start looking for a multi-family unit to purchase with the possibility of living in one of the units & using an FHA 203k loan? 

We put everything in a trust, which protects us, the seller, and our residents.