I've also seen people acquire a property for next to nothing (inheritance, etc.) and are just trying to milk it for everything they can until someone takes it back because it isn't worth it to try and cure the outstanding liens...or they just can't afford to.

Even with the current setup, if you did a simple refinance (which would fully pay off the HM loan) and weren't able to pull out any additional funds, would you be able to have that HM lender do another deal with less cash out of pocket and keep recycling like this? 

Don't cry over spilled milk.

Its just spilled milk now...

Anthony, yes, read Dave Ramseys books, if you can't afford to buy them go to the free learning institution with free books for use in your town (called a library).You have been on these boards for years (I think you went by Tony on another RE board), always the same.The first thing you have to realize is the one common denominator in all your problems is you (this is true for all of us), if you keep having financial problems, YOU have a financial problem,,,its not caused by bad job interviews, people that aren't serious about buying something on craigslist etc.If you can't do anything else go spend 30 hours or so a week picking up scrap metal and recycling it,,you can do that anytime and it won't interfere with your schedule at your regular job.Make a plan financially and LIVE BY IT,,you don't need internet service, go sit outside starbucks and use that internet service,,between the three of you does anyone have a cell phone,,then use that as your primary phone,, I have hit bad times in my life, most of us have,,,but we decide that's not how we want to live,,,You have a financial problem, that is NOT what I call a "serious serious' problem,,,if you have a child or loved one about to find out if they have cancer, THAT is what I call a "serious serious' problem,,,,you have a situation you have allowed yourself to be in,,,make a plan and go work it out,,The way to make more money is to be better at everything you do,,then you will get noticed and will get promoted or another job offer

BRRRR will let you earn some equity on the rehab if you buy right, and recycle your money.

Recycle places often have free old paint that is perfectly good however.

True a banker can go to bat for you but in most cases you can bring as much milk and cookies as you want but that banker brings your file to an underwriter who has the initial say over a wide variety of factors.

Often they milk a property a couple years and then sell it again, when capex starts to become overbearing. 

@Yuriy Skripnichenko - I agree that multi-unit properties are the ones affected, but keep in mind that's what a lot of investors are seeking , plus whenever possible keeping policies, procedures and paperwork consistent across rentals can make managing easier.And the multi-unit owners also need to post a recycling plan for Philadelphia properties.