@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).

Obviously tough to give advice based on minimal info and no info on your personal situation.

Either way, $600 in cash flow should actually help your personal DTI if you go for conventional financing on a primary again. 

Personally, I've bought older homes since I invest in mobile homes myself.

You will never pay more tax in recapture than what you originally deferred, assuming your personal tax rate stays the same.

It has worked out for me, but I'm wondering if anyone else has another person they trust that I can float other, similar tasks to?  

I will return to this situation in the end of this post, but first let me show you why the age of a person can be tricky when it comes to the IRS.

We are now at 21 doors under management and 3 are personal units that we self manage.

This is a good reference for myself and personal private lenders.

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