It's been hard looking for something at a discounted price but I will keep at it until I find a deal that meets my criteria.

This home has appreciated more than $500,000 in since it was purchased, so there is no more exclusion advantage to be had by keeping it in their name (which I think makes my case a little different than the other similar questions on here).The mortgage bank will not activate the due-on-sale clause, as long as the rental agreement shows rental amount that is greater than the monthly mortgage payment... so we're good on this point.So, is there a downside of now "selling" it to their LLC? 

as well as having to go through a judge or attorney and possibly only getting it discounted 10 percent off appraised value?

You can have the listing agent show you and write up the offer/ while they are not representing you what will you I agree with @Russell Brazil - an agent will lose money on those types of deals.For all disclosure I halve bought a sub30k property and used "buyers agent" but it was local agent who showed me that 1 property and wrote up the offer, I was not using her exclusively as a buyers agent but who responded to my Zillow request and I flat out asked if she was ok showing it because I knew her commission would almost be zero. 

I relaoate the tenants for a weeknd discount the rent for a month and tent the unit.

They gave me a good discount and held a note for 20% so it was 100% financed.

@jennyduclair The answer is to find deals that you can acquire for a discount and then force appreciation - if you are willing and able.

I would then work with them on a more exclusive basis in order to better maintain a more qualitative and responsible single tenant who would perhaps be more diligent inasmuch as they would be the exclusive lessee/renter. 

Would I be able to make them sign a new lease with a treadmill exclusion on it? 

An investor can pay par, premium (above the UPB) or discount (below UPB).