Leaving out auction and foreclosure costs for a second, when you write that check for $220k the trustee is going to pay BigBadBank the $175k they are owed first, then he's going to pay LittleBadBank the remaining $45k, and you will get a clean title as the process is going to wipe the slate clean.

Simplified ManagementFor those managing multiple properties, AB 2622 streamlines operations by expanding your hiring pool and removing the red tape often associated with minor repairs.Why It Matters for TenantsTenants also benefit from AB 2622:Faster Maintenance: Minor issues like plumbing or lighting can now be resolved promptly.Fairer Move-Out Costs: Affordable repairs mean tenants aren’t hit with inflated charges for damage beyond normal wear and tear.Things to Keep in MindWhile AB 2622 makes maintenance easier, landlords should still vet unlicensed workers carefully, ensure proper insurance coverage, and remember that jobs requiring permits must involve licensed contractors.AB 2622: A Win-Win for California’s Rental MarketAB 2622 strikes a balance between flexibility and accountability, making it easier for landlords to maintain high-quality rentals while fostering better tenant relationships.

New inventory and relisting rates have actually declined month over month which is allowing to pricing to remain elevated.

In judicial states in which the foreclosure process often takes a year or more, this not only generates income, this also typically mitigates property deterioration, vandalism, and other costly issues which diminish the value of abandoned properties which remain vacant for extended periods.

I wonder if you could find someone or an institution that is bullish on bitcoin also that would loan you 3MM for the purchase of the building with 1MM of it being "traded" across for your bitcoin and the remaining 2MM being collateralized by the property.

"The market can remain irrational longer than you can remain solvent."

To create rental income that enables financial freedom, you need a location that meets specific criteria.Rents increase faster than inflation: Prices and rents are driven by the imbalance between demand and supply.

The terms remain the same, we still pay the monthly mortgage payment.

I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return. 

Whether it remains an ESA or not, the Landlord has to treat it like they would any service animal.