He has a broker fee, 5.5% interest, 5yr lock on rate with float, 3 yr prepayment penalty.

If I can afford to float all the payments for both houses with it being vacant (worst case scenario) is this “safe” enough to at least try keeping it for a while and seeing how it goes?

I could go with a HELOC (30 years) and have a larger line and bigger cash-flow but I don't like the floating rate in the current market and I don't currently need more cash.

Otherwise they will keep floating around destroying other folks' property.

Another idea is to only refinish the staircase and cover the rest of the hardwoods with floating vinyl plank - we have done this in cases when it was cost prohibitive to refinish (due to required patching).

snow to wet.and many others but you get the drift  no pun intended..

At my age, I tend to drift that direction, but I am looking at how to position myself to take advantage of the contraction and am trying to find any other techniques than "Build up as much cash as you can and buy discounted". 

An REO agent would certainly be the wrong type of agent to bring into this.If a power of attorney floating around is truly a concern, the owner can execute and record a blanket revocation of any POAs she has executed.

that's the pilot in me... and the only water landings I like is in a float plane going fishing LOL

Do not drift away from the fundamentals of analyzing your acquisition; be it commercial or residential.