With that being said, you can get the answer to your question by process of elimination, i.e.. your all in price point, risk tolerance, how much of a return you're comfortable with, etc...

They want debt relief.Where is this property located?

Purchase price: $95,000 Cash invested: $55,000 Sale price: $215,000 Pre-foreclose, elderly person living in the house in a extreme poor condition , we offer alternative for his living , We help the owner with a better place to live , we help the bank by giving them Money for a deal that will take a lot of money to be back and functional , we hale the neighborhood by eliminating a house that was a close to tear down and in a bad shape , What made you interested in investing in this type of deal?

Also from non collateralized debt to collateralized debt. 

I see unexplainable debts (possible amounts owed to prior landlords) and late utilities as bad, but the rest is just the poor personal fiannce habits or life circumstances that make applicants renters rather than owners.- Having roots in the community, normally having lived in that neighborhood for several years, or in this case being close to her parents adds screening points.

Since I have that debt and hold the only income for my family, I currently don’t make enough to carry two mortgages till those are paid off.

that is also my only debt. i still live at home & single. 

I bought the home using the HELOCs already, so the debt in those is being considered in my DTI. 

My further research indicated that any deficit in return on original loan amount is considered a "non-business bad debt" treated as short-term capital loss, but foregone interest is excluded (because individuals operate on a cash basis). 

I have very good credit and low debt/income ratio, but the work history seems to be holding me back.