It's a simple solution to a distressed homeownwer, but it seems like there isnt another way unless they are willing to do 'sub to'.

or second worst.. depending on who you talk to .. my banker thinks it was worse than the 30s depression.. but anyway.. we are now coming back into balance.. and unless we have a Credit freeze again were is this distressed inventory going to come from.. ??? 

Save yourself the headache as @Caleb Heimsoth points out.Your biggest issue is going to be: All other debt can be discharged or negotiated down in case of financial distress, student loan debt can't. 

(be more conservative with this number than bullish)Then I would look for a property that is in a distressed condition, but one that you are comfortable with (focus more on out dated vs needing full gut rehab).

I buy distressed properties (non functional) in cash within an LLC.

Distressed properties make the best BRRRR deals.  

I'm walking an MLS flip property with a client in Eustis Monday and have an Off Market seller I'm meeting with later in the week who has a distressed 3/1 block house in Apopka. 

Just buying a distressed property for 80-90.000 euros and doing a  cheap rehab (10.000 euros), total cost of 110-120.000 euros, you get 7%.

I have seen few vacant properties that are distressed.

Notice I have never tried to correct you on our inherent problem. yup one of my homes that's was the case poorly built.. and in Texas were no licenses were or are required.. this happens.. and guess what those are usually the distressed homes.. this market for fix and flip in my mind is for the local pro's I got my butt kicked and will never go back.. and then when your fooling with these homes.. the tax's pile up on you.. and then of course when your just about done you get hammered by a hail storm and have to go through roof replacement..