Also, knock down potential  - old tired rentals in the rapidly changing neighborhoods around down town areas. 

Personally, I would walk away, but he's emotionally invested, so, I'm trying to give him at least some tips, where he should ask for changes in the contract, which probably won't happen. 

Along with the refi after a year or two, I would save up the cash flow to buy another property or contribute to the down payment to get to 78% LTV as fast as possible to avoid PMI and to be able to qualify for a regular loan.Based on everything I know, this plan seems to be the most efficient way to acquire as many units as possible in the shortest amount of time, but again I am fairly new and don't know all the possible options.

After looking back on the past couple of years and reading similar stories, I wanted to share some of my story.In mid-2014 I was turning 30, had recently changed positions and was beginning to realize that my financial future was limited by my employment.

This seemed incredibly inefficient and not worth the time so I canned the idea of real estate investing all together - Fast forward to last week when I learned about creative financing to include wrap's, hard money, etc. 

Properties are generally much cheaper relative to the rent they pull in, than in NY.3) Lower fixed costs - lower real estate taxes for starters relative to your rent roll, etc.4) Lower variable costs - labor is A LOT cheaper here.  5) Less stringent code enforcement.6) Less maintenance - milder weather, and younger average age of homes make for less maintenance.   7) Diversification - low entry price to buy property allows and investor to manage risk by buying properties in different neighborhoods instead of putting more eggs in one basket.In additional to the benefits I listed above the city is growing so fast that homes rent very quickly, often times before the sale of the home.  

Also available is something where if a Death Certificate is filed and the property changes hands - this is different than a Probate - more similar to an Inherited property...pretty cool!

It's infuriating and I have been in the process of getting the Rent Control Ordinance changed (wish me luck). 

I told him that he needs to do what he can to avoid foreclosure, and sell FAST! 

Did something change from your initial analysis that it doesn't fit your criteria anymore?