You get the best of everything- cheap, tax free access to your equity, you get to keep your interest rate and you get the cash flow. 

Hi @Pinny T.!

IMO, only worth it if you have access to enough capital to scale your efforts, though.Can't be compared.To do well in the lending game, in addition to controlling your risk and what others have mentioned, you need... 

It sounds like you’re in a solid position with your skills, VA loan access, and local handyman expertise.

I assumed that was a good thing and the 5% K&T wasn't a problem since everything was working correctly and safely.

No experience with non performing notes.My idea is to buy these notes with the primary goal of accessing the property through foreclosure, knowing that there are several other possible outcomes.

Quote from @Henry T.: Sorry to say so after the fact, but you need to learn some landlording basics.Never give the keys to anyone without a proper signed lease. 

Easy and low cost.Simple for folks to access.

If you want this to be your business, having access to the most capital at the cheapest rate is a necessity.

If you get to a pound t where it's a C grade rental or better you can start to get decent management.