Second, those who retain servicing are concerned with capacity to process loss mit and loan workouts so they don’t want any investor loans or loans secured by the primary residence of investors because, statistically, investors are more likely than less sophisticated borrowers to strategically default.

Remember, just because sometimes bad things happened in those experiences it doesn't make the learning from them negative, it just showed another way we are to overcome those issues.

The negative is you are getting a low interest level in the 1-2% range (cap One 360, Ally, or Fidelity MMA)2.

@John Underwood thanks...it’s about a $500 negative cash flow

You also have operate the LLC as a business, i.e. separate from your personal accounts, otherwise you risk "piercing the corporate veil" thus negating the liability protection you "thought" you had all long.

, Debt paydown to increase VA purchasing power for our next investment (currently have negative equity on the property)?

I decided a long time ago that I didn't want to deal with lenders, negative title companies, uneducated agents who don't understand, creative financing, options, delayed settlements, subjects to financing deals, seller take back, split notes or JV offers.At 78 years old now and on home lock-Down, I have more time to do Joint Ventures with other investors nationwide and more time to practice my art.this is probably more information then you need to answer your questions.Good luck, be safe and stay healthy,Charlie

(I’m wondering how applicant 2’s score is in the 500’s based on what you wrote since it doesn’t sound like there’s anything negative?

I definitely am not saying this does not appear to be a good opportunity because most properties in San Diego are negative using the 50% rule.  

IMHO, this is going to cause a large reduction in the number of visitors, with negative effects on the city's economy.