Not sure it makes a ton of sense to use a broker here and pay 1.25% since you are already on BiggerPockets and can shop directly for lenders here!

They fell behind and the 1st lien LENDER filed for NOD and NTS - Notice of Trustee sale and it went to the TRUSTEE SALE X-XX-2023 where the property was SOLD to a Third Party BIDDER for $375,000I assume under this SCENARIO - the 3rd PARTY bidder who purchased the property at the Trustee Sale Auction 8-23-2023 was buying the property involving the action being BROUGHT to the TRUSTEE SALE AUCTION  by the 1st lien DOT lender and that the SUBORDINATE $101,500 2nd lien Held by HUD may have received any (some) OVER BID funds but utilmately was WIPED OUT at the Trustee sale Auction...Thus their 2nd lien Goes away...Do not believe that the SUBORDINATE DOT lien to HUD survives the Trustee Sale unless they BID to protect their juinor lien interest.

I will assume his loan and he pays me his mortgage, plus a little extra.

New build lenders want to see your 3-5 year experience with this type of a project.  

Lots of private lenders here on BP.

You need to talk to a local mortgage broker or commercial lender for answers.  

Carefully analyze if the potential rental income can support that level of financing costs and operating expenses.Get realistic projections on expected occupancy rates, average nightly rates, operating costs etc. from experienced short-term rental operators in that market.Calculate the debt service coverage ratio (DSCR) lenders will require based on the projected net operating income.

I am looking to rent it out but the mortgage including the HOA is 2,000.

Figure out what kind/price property you want to to look at then ask a local lender who to make that work.

@Melissa Odom private money has been awesome for me and helped me grow my portfolio tremendously.We used it to do BRRRR where we bought the property with private money, rehabbed it with that money too and refinanced as soon as we could to get them their money back.Our private money lender was happy because they made their return and didn't have any worries because we were an easy borrower.