@Chaim Kernkraut, your experience, comfort level, and risk acceptance will determine the answer to the question. 

The second one is painless and efficient once you know how to do it, and as long as you do it well enough, you're still going to grow your portfolio with the owners you target as desirable, i.e. don't question how you rip them off and accept what you give them.If you're a landlord, what kind of tenants do you want?

I stress-test my budgets this way so I can take precautionary measures ahead of time.

Schiano I haven't looked up the statute yet, but what you described is acceptable - where you offer to buy when you send the "Intent to Foreclose letter".

There has got to be a way to do this but I read that docusign is not acceptable and anyway wouldn't even know then how to coordinate payment.......do I just have to go to foreclosure in those many cases?

According to Chapter Five, “An outright gift of the cash investment is acceptable if the donor is- the borrower’s relative- the borrower’s employer or labor union- a close friend with a clearly defined and documented interest in the borrower- a charitable organization- a governmental agency or public entity that has a program providing home ownership assistance to low- and moderate-income families, or first-time homebuyers.”

So if all hell broke loose, all I'm losing would be the original 20% + time + Headache + Uncalculated rehab cost, which is still somewhat a acceptable loss in my current stage in life.

You can also ask the seller of your target replacement property to accept the note as part of the consideration/payment for your replacement property, but most sellers will not touch a third-party note. 

Please do not call the "$49.99 Mold Testing" people. 

To give an overly simplistic answer; the acceptable price range of the property depends upon the rental rate that the property can reasonably expect to demand.