There isn't much in the way of tax strategies as far as I know, but consult a CPA before you move forward so you know.

Used paperwork from a consultant which charged the seller $3500 for his mediation.

You would definitely want to engage a tax attorney to consult on that topic.  

I would consult a local lawyer to make sure that you are following the correct steps to have them evicted.

you can always  try to  refinance  the loan and  get a regaular  loan to payoff the prinvate lender .... definitely  consult  with the  real estate attorney to  see  if  a  refinance  an paying it off is even a posisbility .

I just received a pre-approval from them but they are asking for 15% consulting fee and also that moving forward with the pre-approval might result in multiple inquiries on your credit report.

@Abigail SchuelerI think you should consult an attorney to understand the rules and regulations so that you can abide by those rules and regulations.Its always safe and good to follow the the rules and regulations.Good Luck!

Connect with as many real estate mentors as you can.You can also consult with lenders, brokers and ask them for suggestions on who might be a good real estate mentor most will be able to provide one.Keep in mind that you have to try to think of different ways you can add value to that person.

As always, none of this should be construed as legal advice and we recommend you consult a real estate attorney.

Rishel Consulting Group has a number of clients doing exactly what you asked, including one that has done a spectacular turnaround in Austin - and won MHI's award for Community of the Year in 2015.From our experience as consultants and having inside knowledge of client finances, successes, roadblocks, I would share this:It is going to take more money than just the funds it takes to purchase the homes and the community - quite a lot of it if you are going to do it correctly and rapidly.It is going to take a very well thought out marketing plan with real money budgeted to accomplish what the strategy requires.It is going to take a strong sales operation that is geared to substantially profit from each sale and to sell at a rate that generated real enthusiasm.