HUD, REO and FMA are all leaking out their foreclosures slowly so they don't saturate the market and lose the momentum of rising value...but you can still get the HUDs cheap.I have a number of out of state investors I work with because their states are not as good as it is here.  

The poor sellers in these transactions lose control of their properties and end up in all sorts of financial turmoil. 

A bad deal by definition is one that loses money and doesn't return a profit. 

So that means I'll get all but about $7K back after fees and origination charges ect.So while to the bank they have $18K in equity securing their loan (which they do since I don't want to lose the equity gain I received), I actually only have about $7K cash tied up in it.

It would probably set us back 6 to 9 months on putting $30k down on a rental property and we'd also lose the investing experience.. starting 6 to 9 months later.Or.. should I just use the money at 20% down to acquire our first buy and hold since 2007?

You wouldn't have any liability for the loan, but would lose whatever money you put into it.  

Find out what your "get out" period is without losing your deposit.

For every one that goes head first over their head and makes it, there are a hundred that lose their shirt.

In both cases; car and house, the bank has an "insurable interest" which means they care just as much as you do (or maybe more) about the asset being protected as they have something to lose if something were to happen.

if you have to rent for $1500 it looks like you will be losing $7 a month.