Go to a public onsite auctions.

Few of these public companies are profitable.

However, this strategy has been used successfully (without IRS challenge) by numerous property owners for nearly 20 years, including many public companies that have reported their transactions to the SEC, with the full acquiescence of their boards and outside auditors.

i just sold my lisbon property it has row to public st, over legal deeded row, and ihave a back lot i split off with 2nd row over current row  only issue i found maine doesnt require road associations. lenders out state had issue wanted me to form one with my neighbor but he said no. so i plowed till i sold my house. so found maine lender and no issue. 

Know that flipping and offering houses to the public comes with responsibilities and many potential liabilities. 

https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/t_i_r.pdf

What you say is what I feared had to be done...Will study the IRS publication on depreciation

I would suggest developing relationships with realtors and other professionals in you area to source properties before they become public. 

Alternately, he could use it for a vacation on the Riviera, leaving you to foreclose and pray someone pays more than you are owed at the public auction.If your borrower did not buy insurance then, well, you're both screwed.Lot's of ifs, Raj. 

@Joshua Feit Is the deal listed on the public market?