From an accounting perspective there is no return until the negative equity position has been recovered making it one of the worse returns on investment.  

I’m still going through the learning what questions to ask phase.1) profits and losses?

. * Your premium bid amount will not be included and not recovered.

Don't start buying the cheapest thing you can find, you'll end up spending WAY more- especially in a MFH, you'll be multiplying your losses. 

You'll be viewed as having influenced the borrower and causing the loss, if you attempt to foreclose it then may appear that you did so to take a property.

Even though they didn’t collect enough to cover the total $35k loss.) and a week later I walked the property to confirm I was happy. 

Multifamily valuations have stabilized, and investor interest is picking up, particularly in resilient regions like the Midwest.Economic Outlook: The U.S. economy is expected to avoid a severe recession, allowing the Fed to ease monetary policy later this year, which should further bolster the multifamily sector.Investors should keep an eye on these trends as the market continues to recover.

Our long term exit strategy will be to eventually sell some of the units as the market recovers . 

Would you have net income or net loss without the cost seg study?

I want to be fair but also recover all my costs and make a profit that both I and the lender take advantage of.