From what I'm reading the medicare lien will be wiped out after the foreclosure, so I'm wondering if medicare will negotiate with us. 

Quote from @Stuart Udis: I am tired of reading about real estate investors seeking advice on where they should incorporate or how they should structure their entities for anonymity.

Keep yours clean, simple, and easy to read without using 30px text or humongous font size.

If you don't want to make so serious money than don't,  take these chances and keep reading the books and attending the RE meetings .Get a great agent and investor savvy contractor and make $50,000 fast!

I like number 1 just based on what I read, especially if you can get a new primary and shave off a downpayment for an investment property.

If you haven't already, read "The House Hacking Strategy" by Craig Curelop to understand the investment concept. 

As you read these books, watch the BiggerPockets podcasts.

I have also read their book on self-managing.

The materials charge was $180, and from Google I'm reading that a 400% markup on parts happens sometimes.

This is not the place to cheap out over a few hundred dollars.Lots of lenders and virtually all borrowers never read their loan documents.