So if the bank reserves $100k and gets title then sells the REO for $120k the redeeming party owes the $120k.  

If you can pay less than rent, and if you have sufficient reserves, that's the way to go. 

I understand that with SFRs, my rent, maintenance, and taxes will be more but that is all factored in.My reservations with the SFRs are rising insurance and property taxes.

But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

So put as little money down as possible or have big reserves. 

Hi Anthony,Expect to put down 25% on the purchase and have 6 months of PITI reserves.

I don't want to pour water on your interest, but I don't think this is the deal you are looking for because:  1. problems with all of the things you can do with the property 2. a general lack of reserves 3. long distance. 

Reserve at least 10% of your take-home pay for investing.

Investors putting 30%-35% down on a property is precisely what the Federal Reserve wants - to slow the velocity of capital. 

Hi @Kent Kettell, assuming you're running the numbers on your end, any loan offer that enables you to acquire the asset given your level of cash reserves and reach your target ROI at the expected project duration, net of financing costs.If you don't already have a useful calculator to assess cost and profitability associated with fix & flip projects I'm happy to share a copy of ours!