IMHO * the listing agent needs to fix the mistakes with the taxes, etc. AND allowing the former seller/homeowner to remain as a tenant is a mistake. They did not care enough about the property to organize their lives to pay the mortgage for a HOME THEY OWNED so they will not be able to pay the market rent.
Building in the seller as the tenant needs to be done in accordance with normal tenant screening including running credit on all would-be adult occupants.
The issues that caused the seller to not be able to pay their mortgage will not disappear with the short-sale
Sometimes as an agent we find a cash cow..... A property that has significant extra value in price or a great rental value.... I found one such property.... It is 3 bedrooms, 1.5 bath 1152 sq ft. in Boise at a negotiated shortsale of $73000 plus closing costs. It is even possible that the owner would like to stay at the home and rent it. Whether you are looking for a home or an investment this is it. The value is $100,000 today if you turned around and sold it. I have been in it and wrote an offer on it in October. It is a nice home for the money. If you want to see it give me a call. This home is near the Boise Town Square. It's not my listing but it is a good one... I am even thinking of making an offer. I called my buyers but none of them are ready to move on it. To bad because it is a very nice home for the money.