Those might be better deployed as a downpayment(s) on property.

If nothing is done to the loan dealing with the default then an investor buying the loan is looking at deploying an additional $26k on the low side to work through the loan.  

You will have to work out the evidence of capital deployment outside of purchase.  

-Deployment?

When you know you are going to be deployed (I would guess to another location in the US?)

I am projecting to have enough funds for a 20% down payment on another SFR in middle GA near my other two when I return from my upcoming deployment.  

I am blessed with a low deployment tempo that will never see outside the wire.  

If you can still find a property in a great area that needs a lot of work and when you are done you have built in equity those could be a win.Owning low end rentals in average to suspect areas because they are cheap from afar is a recipe for disaster.If you are local and have a knack for dealing with bad areas and suspect tenants with lot's of issues ( most landlords do not have this ability ) then it might work.Another friend bought some for cash in Phoenix  many years ago and the values have doubled to tripled for what they paid.Bottom line many would say it's better to wait and find a great property in a great area then deploy cash and lock in mortgages an average properties in average areas just to buy something.

Noelle Yarn Sorry, I didn't reply to your message sooner but I was on deployment during that time and I haven't really gotten fully back on to BiggerPockets since returning.

As stated, I've not yet implemented this strategy, so please chime in @Mike R. or others that may have more experience in this strategy.I've successfully deployed combinations of the 1st 3 above and have a portfolio of cash flowing properties in SoCal.