Not necessarily a bad thing but...Most folks in your situation start looking to combine a 1031 tax deferred exchange with a move into fractional passive ownership of something - a DST or TIC product.  

Obviously the person you are lending to could foreclose, but if you are smart in how you structure the deal you would then be receiving an asset at a fraction of it's worth.Any insights from someone with experience in this area would be much appreciated!

You could sell a fraction of portfolio, your potential buyers are not just fellow investors, but almost anyone that wants to buy a home.Does anyone find flaws in this concept?

I was able to to laminate cabinets into nicer wood ones that way for a fraction of the cost.

Also think in terms of fractionalize notes.

Multiplying the result obtained under item 1 of this subparagraph by a fraction, the numerator of which is the number of months that the deposit was held that year and the denominator of which is 12.So basically (correct me if I'm wrong) it looks like your interest rate is tied to the U.S Treasury yield curve rate or 1.5% (whichever is greater)

Buy a fixer upper SFH and build our “dream house” at a fraction of the cost.When you don’t have any reason to move away other than finding the right house you will be able to really find a great deal as well as negotiate better term.

I wouldnt go off brand on the faucet -- stick with Moen/Delta and you can have the valves rebuilt/retrimmed out years down the road for a fraction of the labor/cost to have them replaced when their internals start to fail.If the toilet is old - Pro flow toilets at Ferguson Supply are a great bet - reasonably priced and they work -- no callbacks about plugged up toilets.If you're worried about the floor you could always lay some luxury vinyl plank flooring over the top - either glue down or the snap fit as long as you get the water resistant material.  

If so, all of it, or just a fraction?

Most listed here are trashed properties worth a fraction of what they are asking.