Industry folks can get their hands on discounted loans fairly easily, so your other option is to sell to a passive investor or someone unfamiliar with the industry.You mentioned before that the loan has a pre-payment penalty on it, but it isn't over the life of the loan.

I don’t know what condition the rental will be once I get keys and I can’t just be in a rush to fix things just in case that minor fix turns into a bigger problem or my rush job turns into a slop. 

It's going to cost you more in time, money and life energy than you would want.

Because of the condition the property is in, they would not be able to sell it very close to market value.

that way I can buy the property under the conditions of the current tenant option and deal with them later. ie find them a cheaper place to rent from my other rentals.

For example, if I inherited a property 1,000 miles away and it needed a lot of work to get it up to good condition, I'd probably list it on MLS, but I might be open to a wholesale deal. 

I hope you get possession of your property very quickly and in decent condition.

I get told I over think things which may not be good for some smaller things in life but in this case I think my well honed over thinking skills may come in handy.    

I want to have more saved for just in case expenses for life/a potential rental property but also want real time experience and I think this would be a great way to do it.

So yes it is possible but make sure the terms and market conditions are right