So if the rent is $900 a month, a $30 gift card would be a good gesture to enhance goodwill. 

Plus, there are some limitations on exercising an escalation clause. 

As @Will Koederitz mentioned there is a due on sale clause that some lenders are exercising.  

As for drivers having accidents in the parking - perhaps they were not exercising due care in light of the conditions and their experience - that is why they carry insurance.

As a thought exercise, this is fine...but if you think there is a realistic chance you'll pick up an REO listed for $124K at $75K, I think you're going to be disappointed.In my experience, there are two things at play:1.

I've identified a great property in Atlanta that's in a sought after neighborhood and will require minimal enhancements to turn a very nice profit.The listing is through KW and the agent has asked what is the source of my funding.

The owner is still in control of the property and you need to depend upon him/her to a certain degree.BTW:  If you ever sit down to read the 50 or so pages of your typical mortgage agreement, you will see the lender (particularly the big five) have lots of choices ... they just seldom chose to exercise most of them.

With experience and the right conditions, maybe you could go with a 75% rule, but anything thinner than that is an exercise for the reader.Instead of making riskier purchases, maybe you can be more creative in creating value?

Also you have to consider if you are getting items that enhance the home, and are current and on trend.

An appraisal based on the income it produces is about double (~$300K more).I've never exercised this option, but my main concern is this:  I now have $560K of debt on a property that is only worth $380K by normal (non-STR) metrics.