@Jay HinrichsPre-reo was owned by AHP servicing (plenty about them on here), this platform was homes that had yet to be foreclosed on (I think they were reverse mortgages) that they would sell and manage for investors.they would also finance it at 12%+ rates.

This is an unrealistic scenario because you cannot easily find someone to give you 95% financing on four properties. 

It might be one of those positive sunk costs to increase the value when financing.

How did you finance this deal?

From analyzing deals to exploring creative financing, I’m realizing that success in this business is about persistence, relationships, and constantly improving. 

How did current owner finance the property or were they unable to finance the property due to the encroachment and was this information withheld in disclosures? 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Quote from @Robert Jackson: How to finance your first spec build?

I do not choose to look at the budget after a once in a lifetime event such as Corona and use it to judge the state’s finances. 

Appraised value of $1.35m and looking to finance $950k.Questions:1.