I noticed a lot of people doing short sales to help these individuals and decided to learn more about this from an investor standpoint.

When I read this law, I noticed that it is preventing people from doing that as you would have to wait 18 months or else give the original homeowner 82% of the net proceeds.

He has lived in this house for 10 years apparently it got a condemnation notice because there is a huge hole in the backyard, that he has not filled in, but he still lives there.

chris why not just jump into while you are working full time.. and when the time comes that you can afford to retire on the rental/rehab/flipping business you can just go ahead and do that?

You can usually terminate that with 30 day notice, though this varies from place to place.

They countered the next day at 18K, I countered at 15K. 2 days later they sent over their own contract and noticed I had to pay for all closing cost and I could not sell the home for more then 18K within 3 months.

Noticed your location was Tx.

How much notice do I have to give 30 or 40 or 60 days?

Now I did notice that those 2 have recently done updates with in the past few years....

So I was thinking that I should call up the tenant, and ask them if they would be willing to go ahead and accept the first option at least (for 5 years more) in return for a somewhat lowered rent than fair market value would likely be in two years.