You buy the right to collect the remaining amount left on the defaulted mortgage.Once you have the mortgage note you have a few options to move forward.

Killeen is one option.

Hi @Leonard La Rocca III welcome to BPWith a goal to house hack your option will be much better and tremendously more favorable.1. $50k gets you the house but leaves you very little room for value add. 

They provide flexibility and efficiency, especially for experienced investors.How have you found the terms and structure compared to traditional options?

Do plenty of research and find out what other mistakes have been made in your are and learn from them.Both are great options but maybe doing a simple pros/cons list for both STR and LTR.

Median home values are $170K range, Median rental income $1,275, YoY home value growth 7%, YoY rent growth 7.93%, Rent/price ratio .74%, Population 117K.I also have my eyes on Watertown, NY; Warren Robins, GA; Gulfport, MS; Knoxville, TN, Rocky Mount, NC & parts of OK.There are plenty of options out there --- hope you find something that fits your buy box!

Memphis was an option on our list before we decided to try Midwest first.

Pooling investor money into a debt fund is another option for you, but seems outside of your current approach, Brendan. 

The other thing to note is most times Pref equity is pretty save assuming a 10-20% market correction but in 2021-2023 we saw a 30% correction meaning pref equity in deal specific deals were underwater without any options.

Another option is to explore private lenders or HELOCs to cover the equity.