I'm collecting $1,950/month from the three units and living in one of them now.

YTD  (1/1/15 - 6/30/15)Collected Income: $27,782Property Management:  $1609 (~6%)Expenses:  $6029Net:  $20,143My Thoughts:Reviewing the Property management statement provided above it appears several tenants are late on rent with no long term tenants.  

That house seemed like a great start, although extensive renovations are needed.

It depends on how extensive the rehab is.  

Can you collect the rents directly from the tenants.5.

As an investor, they enable you to collect unpaid taxes PLUS the applicable interest rate which varies depending on your location.

ThanksGreg You didn't specify the upside nor speak of a value add play in the deal so it's a little difficult to speculate how to best structure a creative financing package.Assuming it's a value add play with good risk adjusted gains at the end of the process then maybe the safest route is to negotiate a wrap transaction with the seller, and if your are concerned about a due on sale clause make it contingent on the lenders approval.The seller will confront these same financing scenario issues with all other buyers so if they want to sell the property then they can either deal with the issue with a reset and able buyer, you, or kick the can down the line looking for another buyer who maybe willing to assume a less than stellar financing package.As the buyer though your only concern should be the financing package that delivers you title, assuming you plan on making extensive improvements to the property, and allows you to earn what you determine is a reasonable cash flow from the project.Options aren't bankable.

The mold is actually caused by the tenant leaving their clothes in a place that they knew water collects when there is heavy rain. 

We screen our tenants extensively, but having a proven tenant that has been there a while (and takes care of the place) is a very comforting feeling. 

.- when purchased by father in law-- building was vacant and needed extensive rehab: Roof, electric, plumbing, complete gut and rehab of interior.- he got written estimates on all of the work in 2014, and they totalled $200k.- he had a different contractor begin work on the property without permits, as far as we can tell (there is no paper trail- permits, receipts - nothing). - they did plumbing, electrical, demo interior, installed duct work, new sheetrock and sub floor,  kitchen and bath cabinet, counter, sinks, tubs, toilets, tile work, and new windows throughout.- additionally, he purchased light fixures- interior doors- and appliance packages for each unit which are all sitting in storage now.- since he did not do the roof, there is now water damage from the leaky roof, to some of the new sheetrock and sub floor.Here is where we have gotten so far:**read a bunch of info on NOI, Pro forma, CAP, and looked at other delapated multi family buildings that have sold in the area.