@David Jenkins  if I'm reading everything correctly, I would use the extra cash to pay down my debt or reinvest the extra cash in a mutual fund of some sort until I can find another property.

I don't like to get over leveraged (working in creditor-debtor law and seeing people ruin their finances for decades will give you that perspective).  

This may depend, if they have an LLC then they close business by filing for bankruptcy, then there is no point in trying to collect especially if they have other debtors to pay that are in front of the line.

Once that is reached, then you can work on the balance sheet.Increase cash flow by:1) acquiring passive income producing assets ( My priority would be to improve your acquisition skills to get better positive cash flow)2) paying off debt or reducing interest rate ( I wouldn't pay off low interest debt but I would certainly consider refinancing to long term fixed debt vs. short term ARM's)Good luck

The BK plan will usually take the past due amounts on the loan including fees and create a payment plan from the BK plan to pay the debt or a portion of the debt.  

You would need to consider Construction Financing to flip and pay down some debt or consider owner occupy a multi unit to give your Global DTI a boost.Let me know if you have any questions.Regards,Joe Scorese

2) When applying for an FHA 203k loan, will I need a cosigner because of the student loan debt or does that not count on my DTI ratio?

You could collect on a real debt or sell a vehicle.  

good for yougo make a deal happen-if you are ready to do this then get out there kick the tires and make a dealI imagine that if you are in school you have enough buddys that got your backfind a deal that makes sense and may need alittle work- no major renovations- find the owner and carve out a deal you can afford-1000 down 1000 a month for one year then finance on a term note due in five years or something creativenever be afraid to ask for something different than the mortgage game 4% for 30 years- you are the buyer that makes you the boss or grantor to the debtor, that's why they are selling they are in debt and need outenjoy

Your case in which the daughter is not the original debtor is even crazier to me....