If the OP wants to learn, watch tons of podcasts, listen to Brandon Turner’s webinars, pour over the forums, and throw your life savings on the line and buy a distressed property (you pick the class based on your budget and appetite).

Look at the title of the original posting...The OP wants to buy a HOUSE, not a note.

"love and affection" is enough in some jurisdictions even though unfortunately it sounds like that may be in the rear-view mirror here.But the point you are essentially raising is that this isn't fair... and yes, any attorney who takes OP's case will definitely be looking into equitable causes of action which are based in fairness.

Previously, I owned a co-op apartment in New York City that I rented for 3 years and currently have an apartment on our property that we have been renting for 3+ years. 

As a broker and investor I can expand on this some.REO broker you can almost forget getting one on one service.Their meat and steak and repeat business are banks and asset management companies assigning listings.They employ buyers agent to handle that side of the transaction most times and are too busy doing reports,etc. for the bank.Some smaller REO brokers might handle the buyers side if their book of business is small to medium size.Many of my friends on the residential side stay away from the REO list side now as the margins are too low and overhead too high.They have shifted to be buyers agents on REO's for the higher co-op OR they are listing short sales before it reaches foreclosure.Banks with the ROBO fiasco are gun shy a little on foreclosing but can do short sales more quietly and shed defaulted assets.This is why short sale volume has been picking up more and more and residential REO has been stagnating with volume in some markets.As far as wholesalers and assigners.I don't dislike anyone.I play the percentages.A direct end buyer purchasing cash takes out the mystery and things that can go wrong with a wholesaler.So as far as listings I prefer vanilla deals that have a higher percentage of closing.Wholesalers with a little cash make up many who are experimenting on deals to try and make a buck and are new to the game.This causes many of these types of deals to fall out.It's just like a buyer obtaining financing.What type are they trying to obtain makes all the difference in the world on the structure of a deal.So wholesalers and assignees are a last resort with my listings.

If the OP sells the property to a retail buyer, his buyer's lender will not let him keep the note open.

What an amateur hour lolThe OP is a TK operator's dream.

There are real remedies to the OP's dilemma.

I will reduce my Ops costs by about $20k in the first years passing the shared cost of water and sewer to tenants who will be happy to assume it because their electric (heat/cooling) bills are lower.

Account Closed  In general VR's don't cash flow well because of the high Op Ex Ratios so unless you are putting 30-50% down you are going to have to find that perfect combo of numbers to get it cash flowing.