The new owner did not make the mortgage payments and the seller had no idea until they were served foreclosure paperwork.

Make some lender contacts and ask them for referrals.That should help get the juices flowing on ideas for revving your business up.

I had no idea. 

Like I see how it could work in a perfect world but i cant wrap my head around the idea that I could be making a profit if I still don't actually own the house and still have to pay down all of the loans.

People who live in an area their whole lives (most people), have a certain set idea in their head about the character of different towns and different neighborhoods.

However, I do like the idea of bringing less cash to the table.Any thoughts between these two options?

They have no credit history, so you have no idea how responsible they are financially.

Here are a few ideas to explore that might help you get closer to homeownership in San Diego without selling:Cash-Out Refinance:Refinancing one or both of your El Centro properties could free up additional cash for a down payment without selling.

I have ideas of what I want to put in it, but want it to look legit and not something thrown together if that makes sense.Thank you in advance!

If it’s a good idea make it permanent?