I likely would take a safe approach in my underwriting and value it with the quads then subtract 15% off the total.  

That $2M would be worth $100K on a safe 5% withdrawal rate at that time.

If you're asking for my option and you want to play it safe, budget for 10% vacancy.

There's lots of opportunities in developing neighborhoods, but also seems a bit saturated at the moment.Also, definitely budget security (remote control cameras, alarm system, etc.) for your properties, as there are a lot of people who occupy themselves by breaking into houses and stealing anything they can sell.Lastly, there are a ton of contractors looking for a quick buck.

Any development work they've done on the property also becomes your property.If the property becomes yours, you could try to sell it back to them quickly and below market for a nice profit.

Too many people want to get rich quick and end up getting poor quick. 

Rented pretty quickly Lessons learned?

., your tenant stops paying, you're still in a relatively safe position.

It has been frustrating but it also is a positive as I now can quickly know what deals to not even waste time on analyzing. 

Foreclosure isn't something that happens quickly, so she's had a free ride for a while and time to get her affairs sorted.Cash for keys doesn't take long.