$1775 monthly payments to seller, straight to the principle, with a 48-month balloon.

If you must foreclose, you need to step in and do what they failed to do.This is not exactly "passive" like a stock you can buy and forget. 

Are you in a market with good multifamily stock that have rents high enough for you and your husband to cashflow and meet whatever return on investment targets you have established? 

Since you have a daughter also check out which neighborhoods have good multifamily stock along with good schools. 

You’re way better off just sticking your money in the stock market and not having the hassles of dealing with STR tenants! 

You are also able to pay down the principle as is comfortable, while only the interest is "due." 2.

Most of our housing stock is 60 to 120 years old and requires a lot of capex, especially the bottom of the barrel properties are typically fools gold, because capex will exceed cash flow over a few years.

A few of the principles I've learned over the years that have contributed to this set up:1.

However, if it's going to be a rental, put as little money into the principle as you can get away with.

Our housing stock is mostly single fam.