Here's a short treatise by a title insurer:A deed in lieu of foreclosure is a deed given by the owner of mortgaged property to the holder of the mortgage or its designee where the mortgage is in default and foreclosure is a possibility.

Zillow is saying the house is worth $90k but recently a tree went through the back end of it and I was hoping to get some information on possible ideas or suggestions on what I should do about the situation.

Your ability to connect with them on a personal level matters more than your offer.Think about it:  • The “Used Car Salesman” is only focused on closing the deal as fast as possible.

I don't see any possible way to accomplish this goal. 

Here, to find properties under market value is seems not possible and, cashflow is very minimal and, I see equity is the quickest way to get out and, invest in another property. 

It's possible but the rates would be high.

We have an amazing realtor who helped us find the property and helped us run numbers on possible ARV, @KiKi Wood. 

I personally wouldnt - I am sure you could use the equity to get more than $600/month in cash flow however that would possibly require some work and risk on yalls end.

I've half-thought about the possibility of doing a couple of flips in the same micro-market by adding ADU's. 

It's certainly possible all of those individuals and others are just working on burnishing their interests so people come to them to buy stuff, but in general if you're anywhere reasonably active here without trying to sell people on investing in you, you're not likely to be a pitchman.