If you got it at a steep discount, then they could even more claim that you might have taken advantage of them (they might have been desperate at the time and were very happy with you buying) and now that they've got their head back together, they think that they should have gotten more money from you and become adversaries. 

You are in the position to negotiate, so make sure that you take full advantage.

To your best advantage on a flip, is to have it be a balloon (no worries about payments while you do work on the house) but again, I would crunch the numbers first before saying you'd split the profits.Please also make sure to document everything!

The bigger advantage of InvestorCarrot is that the site is designed for conversion.

Based on the history of the property I would take advantage of the situation once you have completed your due diligence and make a much lower offer.

You are definitely at an advantage with your professional expertise.

Significant advantages are commercial valuation models w/value add plays and scale, difficult for small players to enter this space w/o a lot of capital and experience on their own.There are many niche areas as Dan mentions.  

The only advantage would be the Option Fee and the consistent income regardless of performance and not being responsible for maintenance costs.I think that you will have better luck finding motivated home owners who need some quick cash and will sign a lease with option to buy at a low enough price to put you in the middle.

5) Any programs out there that I can take advantage of?

I just read the Millionaire Real Estate Investor and he talked about 15 year loans being more advantageous in the long term (allowing for more wealth with fewer properties owned).