Before the house is sold on auction, the owner of the house is in the position to reinstate the loan or pay it off and thus retain a title.

I can see the cost to entry being a positive one but I am looking to weighing all the options and scenarios.

Terminating your contracts could jeopardize your position.

It sounds like you’re in a great position to start your real estate journey, especially with your brother as a built-in renter.

Keep learning and assessing your financial position as you grow.Good luck!

Strategic Purchase: Acquired a discounted double lot below market value with a $17k impact fee credit.Custom Design: Built a 6-bed, 5-bath home tailored for co-living or multi-gen use, maximizing tenant appeal.Efficient Management: Managed construction, and self-managed operations to minimize costs.Premium Marketing: Furnished the property and used multiple platforms to attract quality tenants quickly, achieving full occupancy.What was the outcome?

Hopefully it balances out and ends up net positive. 

The risk that the borrower can default, the risk that you will have to foreclose, the risk that you will have to take over payments on the 1st TD if you are in 2nd position, the risk that you have to invest $$ into the property to sell it... 

Would anybody in similar position be interested in starting a partnership/s to go in on a loan together?

Leveraging equity and planning your next move with strategic financing is an excellent way to build your portfolio.