Defaults will likely continue to decline or flatline, thereby diminishing distressed inventory.  

There is a point where recourse debt will have a diminishing return on your ability to grow.

Now, don't forget, diminish, or rationalize them from this point forward. 

So what the heck do I know about diminished returns on upgrades. ;-)

@Thang Nguyen This is a no deal. 20k spread on market value with any work needed diminishes your already relatively small equity position.

Any delay or overages in construction or a sale will quickly diminish any profits.

@Allen LundgrenI am all for charity and helping folks but keeping rents at a substandard rate and thus diminishing the potential reinvestment into your property is not a sustainable solution.

There are diminishing returns starting at year 4-5 on the model I built. 

If you're wanting to reinvest in more real estate then either a heloc (if you can get one on a rental property, refinance if you cant) or a 1031 exchange scenario would be the way to go.The issue with a heloc or refi is that you can only tap part of the equity so your buying power is diminished. 

And even then, the savings are small and since you have tenants paying the mortgage anyway, it further diminishes the benefit.