It could be possible to still negotiate a purchase depending on the stage of foreclosure it is in. 

If you wanted to diversify you could use the income and purchase other properties, slowly add other properties. 

Any amount you purchase less than you sell, or any amount of cash you take out is considered to be profit. 

In that regard, I can guess estimate if they're selling 400K more (after holding for two years), with the kind of remodelling that they make ( lets say 150K), I guess they make 200K net profit.The software is good for "flipping intel" at the very least.I used it for the last three purchase that I had.

The primary thing you're going to run into is whether or not a lender, at purchase of the property, will allow there to be a secondary lien on the property.

I’m interested in purchasing an investment property with equity I’ve developed in my current home, however I’m concerned that if I have an issue renting out the new home it can blow up in my face.

I started purchasing a small multifamily in Columbus, Ohio 2 years ago.

The first purchases are likely going to be California, Montana, and Texas.

Your Lender My suggestion to find #2 & #4 would be to go to the top of this page and click on AGENTS & LENDERS.There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area.

I am assuming that even if you strucutred it with a higher purchase price (85% of value) and pre-paid rent it would potentially still be frowned upon.