If the sale does not bring in enough money to pay the entire amount of judgment, the mortgage holder can ask the court to enter a deficiency judgment against you for the difference between the foreclosure judgment amount and the value of the property.

With furniture and belongings, deficiencies can be difficult to see.I would explain to the new tenant that they are agreeing to use the original condition report from before they moved in, and get their signature to that effect.I would explain to the leaving tenant that the deposit stays with the new lease and they should work with the new tenant to get any desired refund from them rather than you.Otherwise everyone moves out and you start all over with deposits and condition reports while it is empty.

Finding tenants presents too much of a risk of finding the first breathing tenant and overlooking deficiencies, as the OP seems to have discovered.

In the future, it would be smart to call the municipality and check if there are any code deficiencies.

Here are some good ones to help you get a better understanding of how to estimate your rental expenses:https://www.biggerpockets.com/renewsblog/2014/12/0...https://www.biggerpockets.com/renewsblog/2014/06/1...That calculator is deficient and missing the following: 8% vacancy from your total income (U.S. average but also neighborhood specific), Capex reserves 5% of gross rents( roof, water heater, HVAC replacement whenever that time comes), regular maintenance at 5% of gross rents ( plumber, repairs, hvac maintenance, 10% management fee (whether you use it or not, if the numbers dont allow you to have one with positive cashflow, you won't be able to use it in 5-10 years when you might no longer wish to deal with management, so you want to make sure the property CAN cashflow with a 10% management fee in place and meet your criteria still), utility bills with holding costs?

The TK alternative philosophy is (and maybe you can share your perspective of the TK alternative) get in as cheap as possible and worry about the deficiencies of the property down the road and use the cash flow the first 1 to 5 years to address the lack of cash flow for years 5 to 10.

You have to sign up to accept Section 8, have your premises inspected, and repair/replace any deficiencies in order to even participate in the program.

i know what you are saying about some deficiencies of IRR.

LOL, I'm technologically deficient!

You should be cognizant of the deficiency rules in Hawaii in case they foreclose judicially (Court action).