This could create a disdain for flipping properties and not continuing on the path..The other option could be wholesaling it to start a path to build a war chest to go out and do the first flip with your own money down. 

Everything over there is really poor.

So purchasing larger and larger properties allows investors like Benjamin to purchase more depreciable basis while continuing to defer and recapture.  

Quote from @Zach Engen: The federal savings bank does 5% down on vacation homes, talk to Jason Wray over there.Email? 

I'm over in Waikoloa! 

The ability to generate more income for simply the cost of a building is another huge cost saving over buying an expensive commercial lot and developing it.

I'm almost tempted to turn them over to a debt collection agency because a buck is better than nothing.Cheers.

Very glad this happened after we submitted these for over 40 businesses last week!!

If you catch these at the pre-foreclosure stage as slow pays or initially in default all the better as the bank has less in collection expense.You can still work out a discount but even buying at the payoff it can be profitable depending on the property value.You can practically force a lender to sell as it can fully indemnify them as a full payoff as demanded, continuing with a foreclosure becomes a rather vengeful act by the bank to punish a borrower, they don't want to go there.

My strategy is buy & hold for stable cash flow with some appreciation over time.