And the ONLY people being foreclosed on have to have purchased very recently and have zero equity.

So, based on your numbers you could borrow up to 243,750 on property A, but owe 220k, so that would only be 23,750 in borrowable equity. 

Have you had tenants who seemed qualified on paper but turned out to be financially unreliable?

That means on a $500K single-family flip with a $200K rehab budget, you're paying $40K-$50K in carrying costs alone.

Especially since we try to obtain “equity like” returns on these higher risk, more active note investments.  

Be sure to explore all around the forums as well as many of the FREE tools that Bigger Pockets provides.I am on the lending side of things and am always happy to hop on a call to discuss loan options that are out there, even if not offered by my resources.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Focused on flips with a brrrr exit strategy.  

it depends on your situation. 

NEW Metal Roof on Both House & Garage, Situated on Large 0.43 Acre Lot!