For example is a personal loan from a bank is 7.5 % that you could use as a down payment (after its seasoned), and your 401k loan is 4.5% but the 401k is expected to return 7.5% per year the money you save on one end you miss out on the other end basically and if your 401k returns are 20%, then you lose out significantly. 2.

I know PA has a process to go through before you start a foreclosure, but have never seen a requirement to offer a mod.Sure, https://legal-info.lawyers.com/bankruptcy/foreclosures/delay...Under the Dodd-Frank Act, the bank must first wait until the payment is more than 120 days overdue."

Personally, and what I would do for my clients, I would connect with a local community banker to discuss the property and see if their bank would entertain this type of financing (not all banks like doing this type of deal).

It may create a problem for you later if your bank discovers the account is owned by an LLC that no longer exists.

If you have a basement or attic, consider converting it to usable space and attach it to the unit above or below. 

Loan: Bank Statement, $4,300/month PITI.

I'm sure some local banks will do higher especially with a strong relationship but don't think I will fall into that category.

The tenant was paying rent to the previous owner but hasn't been paying rent for a while since the property was foreclosed and sold to the bank.

I don't mean to be a "stick in the mud", but successful SubTo is treated very differently than a bank loan investment property.I've done Subject To for a very long time, been sued over some pretty ridiculous accusations and have had to sue to clear up title.

It is a conventional loan that the bank keeps in their portfolio