J Scott, If the banks raised money by issuing debt (deposits) in the private sector they would have had to pay (say) 8% interest to attract the deposits.

It could also be a restructure of debt.

The general guide is 50% of income is expenses.So at 1,400 a month by 12 = 16,800 / 2 = 8,400 before debt service8,400 - 7,200 = 1,200 cash flow or 100 a month.It's been a long day but I am getting a 4% cash on cash return for the 32,000 invested.

Lower expenses, work extra hours, sell stuff, pay down debt, etc.

That debt will stick with you for life even if they take back the property from you.

why so low when they are both so young sends a message of irresponsibility in paying bills and debts.

It does not however, wipe out code violations whether recorded or not, property taxes, govt assessments or HOA debts, again recorded ot not.I assume you mean buying at an actual foreclosure auction, where you're not buying the mortgage, you're buying the property.

Getting a 75% ltv loan at say 4% will gets you a 14% coc return after debt service and you still have 105k to look for another deal."

To buy property that expensive practically site unseen and to be doing it with debt and such lack of experience in my thought adds up to one things bankruptcy.

Price is important but it makes a huge difference for cash flow if debt service is 4% versus 9%.The question for you is WILL YOU have enough time to deal with the problems of this property and get it cleaned up??