The mower never moved the item nor told the management company about it.Charges are also inconsistently accrued.

@Cesar Chin Yes you could use equity line to fund the rehab. remember that the cost of rehab will be accruing interest with an equity line so i prefer to refinance the whole deal into something for a longer term. if you want to sell in 2 years then you could use HELOC and pay down amount with cash flow from rental income. you have some options. 

Also, if something significant is revealed during the inspection, and you want to trade remedying that issue for a vacant first floor, that could be an option, but the issue should be material and not exaggerated, and the seller should have the option to remedy the inspection issue instead of making the trade.Lastly, and somewhat unrelated, you should always require that any security deposits, and interest accrued on such deposits, be passed on to you at closing.

But generally it works like this:  The investors get 100% of the proceeds until all accrued pref is caught up.

I've lived and worked overseas for about 15 years, and have been fortunate to accrue a good amount of investment capital, and now I'm looking to put it to work in building my financial freedom.

So I said we can do a loan mod by adding all accrued interest to principal and a mod fee in order to remove NOD. 

In other words, Grandpa purposely didn't deal with the mortgage lien on the property as grandpa was in fact the mortgagee which by causing a default benefits his personal interest as the mortgagee by creating a barrier to reinstatement for lack of debt service and the excessive accrued interest.  

I am giving this away and giving cash flow to charity.Well, Jay, it's not entirely free if they have to pay taxes, come on, the seller pays accrued taxes. $50.00 a month?

In order to calculate ROI you should assume the holding period, calculate appreciation and accrued equity and involve Tax consequences.

She seems really motivated and is actually coming from out of state, the property has essentially just been sitting accruing taxes since she purchased it, the next step is for her to show me the property, thank you for the reply Eric ;-)!