Unique Dilemma- Have $ but can't invest

[TJ P.]

Bear with me as I attempt to explain the situation.

Former residence has been going through short sale/ foreclosure/ etc for nearly 3 years. Long story short(not really)- Relocation due to job transfer required due to spouse being medically "retired". Put house for sale through normal channels but could not sell in a slumping local economy. Asked lender for mortgage assistance/ short sale options which they initially declined. Property was left vacant and suffered freeze/flood damage. Also, squatters broke in and stole some appliances and trashed the place. Insurance won't cover due to non-occupied status. Mortgage company then decides they will possibly allow short sale but has found ways over the last few years of delaying the decision. 

During this time, the credit report is of course showing late payments. Original owners have since moved on and the primary earner has advanced their career and is able to save. In addition, there have been influxes cash (tax returns, side hustles, accident settlements, profit sharing, etc) that have put say, 15- 25K available to invest.

The desired investment originally, was to buy SFH turnkey out of state. They live in a high cost area and have no desire to invest locally or to fix n flip. Using the $ listed, purchase a "B" property and begin the cash flow, tax deduction game then continue to roll into others.

Obviously, with a potential short sale and big credit ding, typical financing is not an option and thus, neither are the numbers to make this work. Found a portfolio lender with great terms but won't touch until 2 years seasoning. Other lenders are willing to work after a year but with less than desirable rates that make cash flowing difficult.

So what to do with the $? There are no guarantees the credit/short sale issue will be resolved anytime soon. How would you savvy BP investors proceed?

- Invest what you can in the lending arena?

- Some sort of owner-financing with the hopes things clear up eventually?

- Save more and buy cash in C/Ds areas?

- Nothing, you're f*(&@d

- Sit and wait

- None of the above. Here's a great idea TJ I'll share in the comments!