Purchase price: $645,000 Cash invested: $516,000 80% cash purchase.2,437 sq ft Duplex, with 3b 2b for the front unit (1331), 4b 2b for the back unit (1333).   

I have a bit of a soft spot for the area as a UF grad, and I still come back to the area every year or two. 

So even though our right better get half back then none and or be in the hole like your experiencing.

I am getting back into rentals after taking a break after my mom passed away.

During the 2008 financial crash, low paid, low skilled workers were laid off in droves.

Instead of a traditional down payment, I would give them some money (maybe just to bring the loan back to even).The upside if taken over the loan at the current balance, with some rehab and hopefully getting the front lot back would be a nice ROI. 

I went to the city and they verbally told me it’s ok to turn it back into a duplex.

My question is, when do you think we will see foreclosures make a significant come-back? 

Use that loan to pay the back taxes and get things under control.

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.