The loan shows it is SUPPOSED to be issued only if its in 1st lien position, but if a mistake was made in 2005 it would not be in 1st lien position.

I see so many landlords lowing money through rookie mistakes, yet they continue looking for more doors.

The mistake you are making is it looks like you think you can use the number on the HUD website as your rent amount. 

Section 8  rates (and lower) will also give you a rough idea of what your market rent will be.Yours is an object lesson in the mistake of buying what you can afford up front rather than what is a good opportunity.People just starting out should only buy local, that they themselves can inspect and get a feel for.

Tons of seasoned members here to also help offer good advice as well as keep new investors from making mistakes.  

There is a price for everything, but flippers make the mistake of thinking they can still get market value on a locational error.

Plus, as mentioned your risk exposure would be huge if you didn't have a contract in hand to lease, plus they won't want to lease from you, because they are a Sticky or capture tenant.Start small and Make Your Big Mistakes Early.

In the prior years it seemed all syndicators made money due to cheap debt, now it seems you have to be able to capitalize on somebodies mistake and get in cheap, same as buying a SFH. , now if specify those who sydincators who did  Exactly, for example we run a fund and have zero debt.

Again, we make plenty of mistakes, but our goal is to always become better and create a positive impact and influence in their lives.

This was my first property, and while it's been a great learning experience, I made several mistakes along the way—ranging from choosing a realtor who was more focused on closing the deal than finding the right house, to having a poor inspection and overlooking issues hidden beneath the surface (literally).