Me and my partner is shouldering the costs of the rehab work done, but we are taking into account that if we sell below the market rates with a freshly updated house ($320-$320 vs $375) it should be sellable and a win win for everyone.

Always structure deals to be a win / win and good things will happen.

And less paperwork would be a big win. 

And when you win , you get a judgement , woopie now you have to collect or send the house into foreclosure .

I can’t emphasize this point enough.

It would not be bankable at that price because it will not even make the appraisal and will not meet the coverage ratio on the debt more than likely.The extra land to expand story is as old as the industry has been around, and means nothing without an actual permit to build in hand, and even then you will need to price it out (around $20,000 per lot plus land cots plus tap fees and engineering).I would price this deal more at around $550,000, which is a win/win for both buyer and seller (assuming you can still push rents based on market).

Rather, follow the rules in your state (if you win in court, they should mail you paperwork on how to legally collect). 

Buying other companies' debt, called factoring, can provide steady, long-term income, and factor transactions are generally win-win situations.

Let's get coffee/lunch (I'll pay) :) I will provide all that I have of value to help us all win.

When that happens, the underwriter will pass on your account or just put a high price on it and move to the next account they think they can win.