Do they provide good service, however you define it?

If it is with HUD, did they foreclose or is HUD servicing the loan? 

The general rule of thumb when using debt is to ensure that whatever asset you buy with the debt should make more than the debt service.  

Line Item Fee Collected Rents 10% of All Collected Rents New Tenant Search & Onboarding $500 Business Hour Service Calls $80/hour + Materials Cost + Tax After Hour Service Calls $110/hour + Materials Cost + Tax HVAC Cleaning & InspectionGutter CleaningSpring/Fall Exterior CleanupSeasonal Mowing & Weed TrimmingSeasonal Snow PlowingGeneral Contractor Vendor Cost + 10% Oversight Fee

It will ultimately depend on price point and what level of service you want to provide. 

Could be the tenant is not using the service, doing something to attract roaches or the exterminator isn't doing their job.

If you are open to non-traditional methods of financing, you could use a debt service loan to bypass that requirement.

For comparison purposes, I hold ownership units in a LLC that owns a retail/service center where there is a mortgage loan that initially represented 50% of value, now about 35%.  

However, be mindful that preventative maintenance, such as HVAC servicing, can arise even with recent renovations.

Try this link: Publication 5653 (6-2022)