As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month.

Now it appears they can set up a Fincen Identification record which puts the pressure on the partner vs the partnership but penalties could still accrue.   

Plan is to start with cleveland and accrue few assets and then scale to columbus,pittsburg.

I have $180K on the mortgage and since I bought pre-pandemic, the property has accrued a good amount of equity (I could likely sell for $700K-$750K), leaving me with about $500K in cash.I'm considering selling the property to invest in an out of state market as the COCR isn't great (I net about $1,700/month in cash flow).

Example - if you buy in the original auction and win at 12%, you accrue 1% per month.

Thus, when a foreclosure sale is held, you can set the bid amount up to the amount of the total debt, which would likely increase from 80K to include the legal fees, receivership costs(we suggest 5 - 10% of the rents collected), repair costs, additional accrued interest, minus rents collected.

Depending on how bad the conditions are, accrued pref may never be paid out and original contribution may not be returned in full.If pref equity's original capital contribution is not returned in full, common equity is in even worse shape.

They may have just paid the entire balance that accrued at one time.

.: Massive loss of accrued interest and principal????

The didn't live within their means, accrued a lot of debt, and it eventually resulted in them not paying rent and being evicted.Consolidating debt reduces their payments so they have more money available, but it doesn't automatically teach them to live within their means.