Assuming you can get another tenant you don’t win by making them stay.

Sadly there is so little inventory that many are simply trying to last as long as possible and wait for the constable to tell them that the moving trucks are here for them. 

The only way you can break that log jam right now is severely lowered fed rates, but the level of federal debt is such that they're in a no-win situation because there's going to be little appetite these days for buying 1% fed notes from overseas.The fed rates were kept too low for too long.

Same guy handled a triplex rehab (the one with the theft), and that's where he took money that he simply pocketed or used in some sort of Ponzo scheme to pay off other debts (I have no way to know, but the money did not go to contractors or to continue work at the site).

Finally- you can eliminate 95% of the troubles and risk by simply having professional and legal screening and management processes, so don't sleep on that piece. 

What's being pitched as wholesaling is simply illegal real estate brokering.

As for structuring the deal, proposing to buy the single-family in cash with an adjusted purchase price could be a win-win, especially if you frame it as maintaining the seller's cash position for their settlement.

My thought is FLA is sandy soil and you simply dont have as much problem as other areas.. its very cheap insurance for a buyer.. and now a days 10 to 20k to replace the line is kind of the going rate..

I know that a ton of people will win with the approach you are contemplating taking - in taking a HELOC out for the down payment on an investment property. 

. - patience is the key in this market right now, as many of the deals we've reviewed simply don't work.