It's owner occupied and extremely run down.

You can lock those in with a variety of owner occupant loan products (FHA, VA, USDA, etc) and reap the cash flow for years to come.Central Arkansas (like many mid west or southeast metro areas) has many neighborhoods that have a very high rental to price ratio.

Current property deed has two names (X and Y), however the mortgage note has only one name (X).And as per the title search report, Chain of Title1:When the property was purchased the deed has both X and Y names as joint tenants with the Right of Survivorship.Chain of Title2:Later a quit calm deed was made with Grantor( prior owner)  Y and Grantee (deed owner ) XChain of Title3:Again a bargain and sale deed was made the other way from above Grantor( prior owner) X and Grantee (deed owner ) YCurrent Title (vesting information):And one more time a Deed was made with both names (X and Y) on the deed as joint tenants with the Right of Survivorship.Now, as X is the only mortgage holder from the time of purchase, and bank is foreclosing the mortgage on X, will Y have any legal ownership to the property, if the property gets sold at sheriff sale.

If you are looking at a duplex, you would have to live in half in order to pay less than 20% down (maybe 15% some people say, but Ive never seen a bank loan 85% LTV on a non-owner occupied).To answer your question - I would have 4 months of straight mortgage payments PLUS your insurance deductible. 

Whether or not you choose to buy an owner's title policy is up to you, but I would highly recommend getting one.  

Then look in the county assessors website to find the owners. it should give their name and mailing address.

Dear BP,Could someone explain the difference between Owner Financing and Lease Option, Or is it the same thing?

The owner can't possibly take that many calls and run that many comps, view all those houses and make offers.This is not the kind of work you can outsource to just anyone.

I always have new ideas, but right now I am particularly interested in using LLCs and owner financing to purchase properties that generate monthly income.

@David Zheng You know that's kind of impossible to answer really depending on condition, rental rates, etc...but I'll play, my assumption is the condo building would be worth more because it is more likely owner occupied and have a HOA and what not.