Perhaps there is a chance to restructure, keep the mortgage payment around the same and still obtain the money you need for a down payment.

Most firms will prepare a complimentary estimate (feasibility analysis), for you to see the numbers, of how much it would cost, and how much benefit you could expect.

Chances are, you wont find anything close to the city that is worth buying.

Then they send me the loan estimate with this “rate lock fee”, which I turned down.

Then he gives me a cost of what it would take for labor and then an estimation of materials, so I can submit my offer quickly. 

Our realtor estimates we could maybe get $10k out if we sold and we put $20k in, and of course because of interest we haven't paid much into equity this last year.

I think you're also end up paying for amenities that you don't get the return on....for example pool, yard, fitness.There's also more chance for things to go wrong. 

I have a chance to make an offer prior to the auction on either the note or the property. 

I am deliberating two possible scenarios for myself in the future to continue down the path of working for my self and family as well as investing.Scenario:80k-100k cash on hand not in a rushOption 1 potentially:Find a older duplex 30-40k for cash with a higher estimated arv than the projected rehab, rehab property, rent, refinance.

Things definitely aren't as bad as they were back during the recession, but a HW Tank is still an easy payday with very little effort, if someone thinks there's no chance of getting caught.