Thanks for your comments and insight 

Quote from @Michael Moya: Hi Bigger Pocket Community - Looking for some insights and advice on loan options for single family homes under $120K.

Thank you for your insight. 

Does this completely prevent the tax lien holder of getting additional gains after foreclosing? 

It's crucial to evaluate how the deal performs with the new mortgage:Updated Financials After Refinancing: Market Value: $250,000 Mortgage Amount (80% LTV): $200,000 Equity: $50,000 Interest Rate: 5% (30-Year Amortization) Assuming after 12months the rate will drop from 6% to 5%Monthly Expenses: Mortgage Payment: $1,074 Property Tax: $260 (4% Adjustment from last year) Utilities: $309 (+3% Adjustment) Insurance: $104 (+4% Adjustment) Vacancy: $105 Repairs & Maintenance: $105 (now after 12 months we can assume we have repairs at 5% factor on annual rent) Total Monthly Expenses: $1,957Rent Income after 12 months assuming annual rent increase at 5% : $2,100Cash Flow: $143 per month 😊Year 2 Return on investment $2,951 Principal Paydown year 2 $20,000 Property Appreciation (assuming 8% per year) $1,720 Yearly Cash Flow (this will increase as rents rise) $50,000 Initial Equity Total Gain $74,671 with just $ $22,789 remaining in the deal. 

Having before & after pictures is a string tool when dealing with HMLs and real estate agents to gain business. 

No reason for me to go the through the hassle of the sale process unless there is some type of gain which the investor is open to and this is where I need the advice.

Appreciate any insights on this.

There was something in it for both of us.You have to find some sort of common ground or gain a lot of trust to show how serious you are about this.

You’ve gained valuable experience from your first duplex and are now approaching real estate with a strategic mindset