Which is counter-intuitive, normally Fannie is more generous to owner occupants than she is to investors. 

In my original post I was trying to calculate how much to offer to a home owner to buy their house.

If they did the bank would not accept a big loss on the note but would want the owners to make them whole instead.So doing specific performance etc. can be a waste of time with a short seller.

If your goal is cash flow (in my opinion) you're better off trying to buy with owner financing (contract for deed - land contract, installment sale, mortgage wrap, promissory note with a first lien holder position on the trust deed for the seller (if they own it free and clear), or sub2.

It just bugs me that there are irresponsible management companies out there and I'm sure learning what not to do as a soon to be property owner.

If the house is actually valued at $500k why would the owners want to sell it for $300k?

I would like to buy the property from the owner but don't want to offer a bad deal and in the process anger/offend the landlord.

In order to set one up you need to be a small business owner or have legitimate self-employment activity. 

The previous owner paid for the heat and was wondering if anyone else came across this situation and what should I do about it?

Oh, and this month we  are having a one of the owners/ lawyer of Common Wealth Trust Services speak about setting up Land Trusts to do your real estate investing.Have a blessed Day!