There are some markets out here in riverside county that are still undervalued and are trying to get out of the hole the 2008 crash put them in.

I was at my local water hole the 9 months I spent there.. and saddled up to a nice guy who happened to be a used car dealer I asked him the same question how can you take that risk.His answer was classicSON  my clientele  will live here their entire life  they may drive to New Orleans once or twice in their life.. when I sell them the car I always get where their moma lives.. and if they don't pay we just drive around till we find it.. most of my clients will live work and die in a 5 mile area..

The reality is that if the property is worth $700k and the payoff on her note(s) is $700K she is significantly in the hole. 

I found a hole.  

The top were mdf and whoever drilled the holes messed up the jig so the holes weren't correct.

I have some money burning a hole in my pocket and I want to use it to grab a coffee with you!

Otherwise, we would have been way in the hole. 

another thing that occurs to me is something that you should so anyway: regular inspections. quarterly, or at least semiannual inspections are a must. and make sure the tenant knows you're coming through at those intervals, because you want them on notice that you're paying attention (e.g. grow houses, broken stuff, holes in walls, etc.).

I see many folks think becasue they have rentals they should get same rates for these high risk complicated loans.. and never get them done becasue they keep shopping and getting led down the rabbit hole with promises of funding that never arrives.. 

I've been told all floors coverings need to be replaced and it needs some drywall work, small holes, and painting.