As part of the trial payment plan the borrower was able to put down $3,000 towards arrearages and agreed to an increased monthly payments.Borrower has made 6 months of consistent payments and we modified the loan to have the past due rolled into the unpaid principal balance.

My property management thinks he is qualified based on just 4 pay stubs, employment verification and one screen shot of bank statement (just total. )when I ask my property management to ask that guys to show actual bank statements ( not screenshot of avail balance) and w2.my pm said, “it’s easy to find fraud using screen shot. the more I wait the more I loose.

I realize we are extremely fortunate under any circumstance, but the thoughts I am balancing are if you could only return ~3 or 4% via renting out after a thorough renovation, would you consider just selling outright. 

then the entire balance is due in usually 6 or 12 months.

I generally recommend a balanced approach: prioritize a solid foundation by paying down some principal while strategically acquiring new properties using savings and cash flow.

I like areas that are balanced between appreciation and not too tenant friendly.

In the year that the investment property is sold, should the cash flows include not only the cash inflow from the sale of the property but also a cash outflow equal to the mortgage balance on the Balance Sheet at the time?

Like Robin said, you could stumble on a bridge lender that will give you a ton of proceeds in mortgage, but that runs its own risks.If you want the conservative, but open to lending to your LLC with outside investors, get on Fannie Mae's website and look up the small balance brokers.  

Sacramento metro offers a really nice balance between cashflow opportunity and consistent appreciation (due to the fact that it is a State Capitol, two major universities, and one of the fastest growing cities in the country every year for a decade+)I personally only invest my capital here in Sacramento, although I do business in a number of cities.

If your plan allows - you may be able to take a loan FROM your 401k; the loan is limited to 50% of the balance, or $50, whichever is less, and must be repaid over a period of 5 years.