My question is, if we decided to do the second option, how would that work?

But at this point have to consider all options.

Hello Rahul, When it comes to DSCR loans for STRs, there's a variety of options available.

Hello @Aubrey Ford,I would be happy to chat about your options when you have some time.

Another option is an actual commercial loan.

You'll have to research your respective state to see if you can go through the Affidavit of Heirship process or if Probate/Surrogate court is the only option.  

@Quiche LynnIf a home is in foreclosure the options are to work something out with the lender, pay them the amount that is past due or file bankruptcyHow they get the money to pay the lender what is owed can be from any source, but unless that lender is brought current or has some type of arrangement they typically do not stop foreclosure

The wonderful thing about owning an investment property are the options/strategies to consider in a situation like yours.

But with many deals facing the stress these days for deals where investor loses their original capital what are the implications or options and the tax treatment of that, and how would it be different than just a simple depreciation which is limited by passive losses? 

Actually, having a an optional car to rent might be a great idea!