They usually maintain nicer because of the purchase agreement existence.There are many folks who have not qualified by a bank and do not know there's an alternate that will take owner financing. 

The main alternate would the Agents agreements to use. 

There are many state, federal, investor, lender specific qualifications for alternatives to foreclosure and a loan mod is but one of the alternatives.

I need to replace new roof, replace windows, pain and fumigation for termite treatment.

Here are the options I’ve outlined:Traditional duplexSFH with a basement to convert to a small lower apartmentSFH with correct zoning for an ADU (Alternative Dwelling Unit- more reading here:Pre-purchase two townhomes from a developer before they go on the marketWhat would you do?

I'm not going to go into full details but typically owner occupants get preferential treatment on those houses.

That said, if there is a mod in process (alternative to foreclosure, which could include a short sale but not a full sale), and a complete package is submitted, lender has to hold any action for 30 days.

Our leases all specifically outline that tenants are responsible for all pests treatments. 

Alternatively, you can simply give them the downpayment your Dad gave you, keep your property, and call it a day...

Thanks for the alternative solution.