Oh yes 42k in property taxes with a 60k ARV is a negative property.The owner is in denial and grasping at straws.Property taxes survive the foreclosure process so they have to be paid and from my experience they do not negotiate down because they do not have to.

He was eating Peanut Butter and drinking Circle K Coffee to survive.  

This model is comparable to having a 401k invested in the stock market, but with different choices for investments.  

Maybe I'm prejudging here.Jeff  Yes you are prejudging there because many tenants that want to buy have saved up 3% for FHAMany millennial's have saved up enough money of a down payment to buy a house but they are on the fence on getting a mortgage; sometimes renting for a while is a good idea and getting financed later is better for them, test drive the neighborhood so to speak.People that have credit problems can save money just like people that don't have credit problemsYou can have credit problems but you can be self-employed or you have to much debt; those two issues stop a mortgage cold;  doesn't necessarily mean they have credit problems per se.Over 45% of current middle-class housing mortgage applicants get denied because of either DTE debt to earnings ratio or-perhaps 1 year on the job or -perhaps self-employed incomeMy students have access to a FICO coach for their tenant buyers that raises their FICO score so they can get a mortgageThe lease to own business model is helping sellers so they don't have a lot of equity in helping buyers by need some time to get a mortgage, it is not wholesaling it is closer to being a realtor

That's the amazing thing with this website.Our model is buy and hold real estate through pure rentals, personals turned rentals all being class A properties so smaller margin but lower expenses.

In the model I use, we often have more in the property than its FMV but with shared housing we value the property on net cashflow not appraised values.

Currently Missouri Brokers are in the mode of license renewal, so my Saturday is spent working on Continuing Ed.  

Now, I go into "what-if" mode.

What's even more intriguing about the process is that only governmental liens survive the sale, which could mean mortgages, back HOA dues are wiped out. 

Go ahead and start interviewing other ones.If you need help understand what to look for, check this article out-http://www.biggerpockets.com/renewsblog/2013/01/26/surviving-hell-property-management/I have others on there about property management but that one is a start.Also remember too, and not sure if this is the case here or not, but sometimes it's better that the tenant-placing process take longer because if you have a good manager, they know what to look for in a good tenant.