When you first approach the homeowners about helping them out of their property, you'll want to let them know that you aren't going to save their mortgage you're just trying to give them a clean escape from having that defaulted mortgage on their credit.

As long as the property generates enough cash flow, you may qualify based on the asset alone.Another route is to explore portfolio loans from local banks or credit unions.

Those are the hardest to notice because they dont cause any damage and drain normally.

Quote from @Michell Chase: It isn't a large amount but my concern is that if I remove the tenant in July I have no deposit in the event that there are damages to the unit. 

I would also only do this if both properties have solid appreciation potential.If it was me, I’d consider trying to get a HELOC on the first property and use the funds for a flip or a BRRRR so I could pay back the line of credit within 6 months and then go do it again.

Did you pay with a credit card?  

Focus on keeping upfront costs down and shop around for lower interest rates or lender credits.

The reason being I have to build up my credit score before I can get approved for a loan. 

The problem in analyzing is we have no idea what Thomas' personal FICO/credit history, assets, vesting type etc.. 

We offer it at TFSB but it does require the basics like qualified credit score, DTI ratios - Must have W2 or (2 years of 1099 income) to qualify.