Due to the age of properties here in New England this is always a risk if you aren't prepared to deal with the work or expense. 

That is likely easier, but you aren't in sober living doing that.

The tools on Zillow and Redfin aren’t especially helpful since the house is off market, and they’re underestimating the number of bedrooms.

I have spoken to PML that fund flips and they aren’t sure how to lend for auctions.

Instead, leaving the 30-year note on there and paying the difference towards principal will cut down the term of your loan, and you aren't forced to pay those higher payments.  15 year notes aren't as incentivized as they used to be either so the rate benefit is negligible.  

I currently manage properties throughout Los Angeles County, and occasionally come across properties that aren’t ideal for long-term standard rentals.

@Neal Coppola As mentioned above, inventory has increased significantly for these lots, but with that being said, the overwhelming majority of those aren't listed anywhere close to what I would consider a reasonable price.

Without a hot tub, or a swimming pool, or a back yard patio you aren’t offering anything but a place to sleep.

And being all in for more like 65% or so is really hard to do as those great deals aren't easy to come by. 

Are you saying the debt can be wiped out if you aren’t sending statements?