VA loans are the only loans that allow this, and there is no rate penalty for it no longer being your primary home.With that in mind, you could do a cash out refinance today at a higher rate than current market rates which will create profit on the loan, we can take that profit to pay for your closing costs.

Good job on this flip!  

It seems to me like they broke the lease.

Agree $800 seems overrpriced for a room, especially since it seems like he is acting as a live in nanny, the lawyer seems out of touch. 

Thank you to @Owen Rosen for helping me with the insurance on this one.

If this is your first real estate purchase I would stay away from auctions, there's too much risk involved especially with where price points are in your market.

I'm wondering if you can help advise on this situation.My mother currently resides in a property located in Los Angeles County.

It could very well be its all lost but seems like a big jump to conclusions by investors that basically did very high interest rate investing and expected  CD like performance..

The information contained in this post is not to be relied upon.

You likely only made a down payment of 3-20% ....but you still get to write it off on the full value across 27.5 years.So 400k/27.5 = 14,000 ish a year of a write off where during the year you didn't need to incur an actual expense, no cash outflow.