Another is Scottsdale, part of Nationwide Mutual.Most likely we would use an admitted insurer unless VERY special circumstances come up. 

I agree with Scott, you shouldn't not do a deal because of tax implications (in this circumstance).  

There is also no minimum as to claims of equity that may be acquired by a tenant-buyer, a judge may well take into consideration a "buyer's" ability to pay an option price, regardless of the percentage of a sale price, if that amount appears to be excessive under the circumstances, for example, a buyer had $5,300.00 and the investor took $5,000.00 and basically cleaned them out, that can be an issue considered.

Just depends on timing, circumstances, etc.

Under certain circumstances, an appraiser may apply a gross rent multiplier for valuation purposes.

The circumstances of the seller, their motivation is part of the negotiation process, however when you are buying real estate, playing on the misfortune of others more than aligning your offer to the true value of the property is simply predatory dealing. 

As for other liens that survive, these can be: IRS-under special circumstances (under 120 day redemption period from deed recording).

...Charles, I only recommend out of state in two circumstances.  

People throw opinions around BP and can put others in harms way due to ignorance.Yes, in rare circumstances, adverse possession may fit the bill however it's the tool of last resort. 

As far as I can read your circumstances, that does not seem to apply to your "facebook friend" (buyer bird dog) or your "connection guy" (mucha moula)?