So purchasing larger and larger properties allows investors like Benjamin to purchase more depreciable basis while continuing to defer and recapture.  

I am going to continue educating my self while I get enough for the DP and other expenses.

You have given me some good info as we continue figuring out our next steps.

Now I always give the disclosure that I'm not an exact expert and can only give you my limited knowledge and experience. 1st/2nd Question:I've never had a Housing Authority close up or lose financing.

If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

Quote from @Jeff Brogan: I would hire a trusted expert to get you real numbers, someone that does it in that area all the time (rents out properties/property management). 

I do not see any of those scenarios as likely and therefore see poor/negative cash flow at max LTV refi continuing for some time.  

Here you would continue to find borrowers and fund loans with your own money.

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