If they paid with 3.5% down on an FHA mortgage, and got the loan at the then-market rate of 6%, and made no extra payments, they would still have a remaining balance of $92k.  

When you're ready, here are some good DO's and DON'Ts when getting bids:DOWrite out a detailed scope of work that outlines exactly what you want to do.Clearly define what (if any) materials you will buy and what the GC will supply.Get multiple competing bids.Check GC references, call past clients of theirs and possibly even ask to see their work.Closely analyze each bid and ask a lot of questions on things that are not spelled out.Ask each bidder for an anticipated schedule for the work to be completed.Ask each bidder about their desired payment terms.Sign a contract/written agreement with the successful bidder.DON'TWaste people's time if you're not serious about hiring them.Walk the job with competing bidders at the same time.Assume that all GC's will see the work happening the same way.Pay large sums of money in advance unless it's justified.  

Please send me a PM and let me know the details. 

Always do a math analysis and try to look at the prospective properties before you make an offer or at least have a clause in the sales contract that allows you the time (usually about 15 days) to make a detailed inspection and possibly back out of the deal without a penalty that will hurt you too much.I went to college too (and it is not mandatory) and I got a business degree that emphasized real estate.  

If anything comes back a concern, re-run your numbers with extra repair costs, and with dropping your offer price, until you get back to numbers that satisfy you.

They paid us monthly and we were actually earning extra $500 from it.

Would love to get more details.

Retired police/military/firefighters/contractors/plumbers/etc. or other folks who are retired but want some "extra" money for hobbies are good sources for finding someone willing to do smaller jobs. 

On the other hand, if your agent had showed you another 20 houses, would you be offering to pay them extra commissions?

@Trevor Mauch, thank you for the detailed and thorough response.