Hard money is not something to be toyed with until you really know what you are doing ... if not, 12%+ loan on a significant amount can quickly eat your lunch financially.

When they entered, they found clothes, shoes, toys, etc. all over the house and it was clear someone had been living there.

Target closed down their store over there and other large companies like Toys R Us closed down.

Ok before I went on vacation I was at the house unclogging the sink, the house was a dizaster pencil and crayon markings on every single wall in every single room and hallway, the privacy fence had spray paint all over it, the deck had the same spray paint where her kid was spray painting his toy guns, there was a mattress leaning against the fence, a mountain of trash, door handles broke in one of the bedrooms, grass hasn't been cut since she moved in. 

You will run into the issue of value as people always think toys are worth what they paid for them.

The ones who were foreclosed upon due to being in bad loan products where the loan payment skyrockets (ARM for example) are quite different from those who just chose to not pay the mortgage (but paid for all kinds of toys and goodies instead).

It could be very motivating to someone struggling to get that first deal...I started my first "business" selling toys in the 5th grade.

I have a large garage behind 1 of my propertiesthat I keep for my shop , (lots of toys with engines) I have a submeter just before the panel , every month I read the meter and reimburse the tenant for the electric ..

My tenants would be arrested from all the trash left behind, I'd get sued and involved as the place would be mine, the house confiscated and sold at auction to ......yes, the highest bidder!

I agree with everything you're saying in theory and we're certainly still toying with a house hack idea if the right property presents itself.