(Genuinely asking to understand, not question your intelligence) but why would I focus on Return on Equity (ROE) and not track being paid back on my original cash investment of $130K?

So as the original post by @Chad V.  

You could look at filing a complaint against the original contractor - realizing those don't often go anywhere, but it's something.

May have other locations as well.IMPACT Live Arlington- https://www.meetup.com/impactarlington/ Dennis Henson’s original group in a new form.Novice Investors Club was Texas Investors Club- https://www.meetup.com/novicereiclub - Meets several times a month in Carrollton or Grapevine.

My original thought was to basically just triple what the normal vacancy rates were in the area, but I know that would not be super accurate.

Portfolio income, such as interest does not have any preferential tax rates so it is taxed at your ordinary tax rates.For the average taxpayer, interest income will not be considered active or passive which the original poster is trying to claim(as passive income).You, from my understanding, are in the business of originating and buying notes.

The borrower originally agreed but (this is where its important to take notes as the gurus do not teach this),  - what do you do before getting a deed in lieu?

I purchased my childhood home from my father for about $100k less than market last June and the original plan was to hold for 2 years which takes me to June 2025, do minimal renovations, then sell and take the profit from the sale and purchase one or two more investment properties.

Everyone will walk away feeling OK if you amend the original agreement.

The kitchen can't be fully upgrade with a nasty original bathroom.