may be more intially but dropping from 6% intrest to 4% might help you a little and shave off some of the monthly loss.

Take the property Sub2.... you'll have some cash outlay (pay off the realtor and all closing), but at least you get a loan that is already in place, save those costs, and shave some time off the loan.  

@William S. have you considered delayed financing if you have the cash to buy these properties?

Sometimes if the pipe is cut to low it can foam over.

Hard money can be a good source if all else fails, and high interest rates don't matter if you refi three months later, but the points can shave $4,000 off of your profits.See if the seller can get a friend or family member to loan them $5,000 as a second position note against the house.  

Imperative to move forward with integrity and ensure the borrower(s)/owner(s) have a full understanding and disclosure of what they are getting themselves into and that they may be able to get more money if they go in a different direction if selling to an investor at a discount. 

You see I am a triathlete and there is nothing I would not do to shave a single second off my swim, bike or run times.  

@Adrien S. have you ever called the PR or do you send a letter?

If the underlying loan(s) have not been satisfied, they are continuing to accrue interest and must be paid in order for them to be released from title. 

Tons of SFH that were built in the 20's and 30's have been rehabbed and sold with selling prices almost doubling in that period.