The opening balance sheet looks like:Assets:CFD for Prop 1: $100KCash: $12KLiabilities and Equity:Loan balance for CFD on Prop 1: $88KOwners Equity: $24KIncome Statement:Rent Revenue: $1100less PITI: -$661Less vacancy and repair reserves: -200net distributable cash flow: $239$80 distribution to each investor for per month on an $8K initial investment.As the MTG balance drops, the equity position of each investor increases, once paid off, the CFD is exercised and equitable title transfers to the LLC, and I no longer hold a financed property in my own name.

Senior can exercise its business judgment on the timing to foreclose if there is a default.

@Jose Castillo This is just a thought exercise at the moment for me, but let me walk through what I'm thinking.

They are a great if you do any commuting or while exercising.

If you have a responsible tenant that wants to save a little on rent, then they can do it and some are motivated to do so to save the money, I know I would be and enjoy the exercise.

Active participation simply refers to the amount of management oversight you exercise and serves as a qualifier for taking the net passive loss allowance.  

My take away from my time working with mortgage servicers is this- if you feel like your daily work life is an exercise in futility... get out.

If you do an exercise in "Values Clarification" it may help you find your passion and purpose.  

Seems to have much lower hoa and with a good community pool exercise area.

Unless you have behind the scenes info, the liklihood of a deal here isn't worth the time you're investing trying to figure it all out (unless you're just doing this for mental exercise that is).I suggest you come up with some sort of threshold/prelim test to filter out these type of situations and focus your time on properties that are more profitable and more likely to be sold at the price you need.Time is your most valuable asset.