There is also a number of ways to value.

We converted the attic to a coworking space with a community kitchen, front and back outdoor patio and gathering spaces.This is where you can...

My wife and I are officially under contract with a new primary residence, with the goal of moving and then turning our current home into a rental.

If you don't plan on selling for awhile, then a new home is a great way to go.

Its a numbers game. 

If this is a $400k home, you have to make a lot more than $20k/yr in profit/cashflow.  

Find a realtor that knows the transitioning areas, there are a lot of "not-so-nice" areas in South Bend that would not work for short term rentals, but there are also plenty of great neighborhoods.

I charge a really high fee and require the tenant to carry bite insurance.Inspections are done on a schedule and always recorded with pictures and/or video.

If you do a proper foreclosure and notify all parties a tax foreclosure can clear up an otherwise scrambled title. 

Ask for a "Pre-Underwrite" this is where the bank underwrites the file and give you a "Loan Commitment" instead of a generic "Pre-approval" letter.