@Richard PastorI would urge you to get a commitment from a lender on a heloc BEFORE going down this path.

As such, many aren't incentivized to advise you along that path (sad but true).

I use Baselane for my LTRs, and it is straightforward enough to handle everything I need.

I've had the opportunity to see what the Attorney's version of the NoD looks like so if there was a situation where the borrower just needed their feet held to the fire and I didn't anticipate a need to go down the Foreclosure path, I feel comfortable sending an NoD letter myself, certified mail with noted stipulations to cure and outcome if not cured. 

My thinking is this leaves me with two paths: A) Best case is I pick up the foreclosure for $1M, immediately list it for sale at $1.6M or more and hopefully sell for a > $500K pretax profit. 

Communication with them isn't always straightforward, as they are notorious for taking 2 or 3 days to respond to my texts.Looking forward to your insight on this!

@Jesse Jones-SmithCongrats on the job and housing perks—those open some interesting paths!

Since I don't have that requirement, I attract many potential tenants eager to physically see a property before investing 25 minutes online and spending $25-$50 only to be disappointed by a no-show agent, which can feel like being scammed.I keep the showing process short and straightforward, lowering the barrier for more applicants in my pipeline that I can potentially approve!

It's the path of least resistance and how they and their clients are compensated.  

Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date