I really appreciate everyone's feedback. 

It’s all about positioning yourself for long-term gains, and with your current knowledge and tools, you’re in a great spot to make that happen!

Is your income in a place that you could fund that for awhile until rents catch up and make it positive? 

If you did not and it’s unsecured debt you could be out of luck on some or all of the money as depending on his situation unsecured creditors in a bk may receive pennies on the dollar depending on what he can afford and if converted to a ch 7 you would get wiped out.Even in 2nd position he could argue the property is underwater and wipe out your lien.

I was just curious if anybody here has any personal feedback on investing in that area and can shed some light (other than numbers) on why that place would be worthwhile.I apologize in advance to anybody who lives there and loves it.

Instead of extensive renovations, we focused on strategic market positioning to enhance the property's appeal.

Quote from @Troy Froistad: Thanks for the feedback.

If this is your dream retirement place, perhaps you use the LTR to simply subsidize your purchase even if it's not fully cash-flow positive. 

I have been through the BK route more than a few times in 40 years of HML ing.. and as Don states it can be just crazy what happens what the debtor will do what the BK trustee will do what the judge will do.. that all said if your position in the note is discounted enough probably still worth it. but in my mind to pay 90% and if there is not SIGNIFICANT upside I personally would not do it unless you have a repositioning play or something that no one else sees. 

More than happy, to turn this into a positive relationship with you.I’m here to help everyone—including you—achieve more success with motivated seller lead generation, wholesaling ethically, running a business, and any other areas where I can share my expertise.So, I propose we put this bickering aside and focus on providing real value.