So they go and list it on MLS for 260 it never sells of course because its no deal.it swings back to me and sure enough.. once we dug into it a little more these guys did not realize she owed 195kk against it and it was in foreclosure.. about to be lost.. so they had it tied up  had fouled up her title by recording that document and they were going to lose out. so long story short I told them I would give them 6k and the seller 5k. and stroke a  check on the spot for 211k.. and it was done.they were lucky to get that. but they would have had no compunction ripping 100 to 150k of equity from this older lady in distress.I leveled the house built a new construction that sold for just under 750k and we made right at 200k net profit on the deal.. but I would have passed if I thought these guys were ripping this ladies equity I don't care how much I would have made I can make that on another deal and not take advantage..now granted when folks CLOSE and then resell well all bets are off and its harder to go back and see what someone paid for things.. 

Deal flow is king in this market and you either need to have it or to invest with someone who does.Done correctly, passive investing does not simplify life during your learning curve but it does afterwards.If you can predict economic cycles, forget about real estate and short (or long) the stock market...much easier than messing with REI.Stick with good sponsors, cash flow, add value, prudent debt, and reserves...good recipe at any point in the cycle.And if you are investing passively, consider assets classes other than just MF.

My fiancé and I bought another house shortly after the one I purchased for a primary residence in a neighborhood that has a lot of room for appreciation.

Short of trying to get a stay, what would some of you do if you were us?

We are still new at this and may not be taking everything into correct consideration, but we are looking to get the best return on our investment, both short and long term.

@Jeff A. the short answer is that yes, this is entirely possible. 

Life gets hectic sometimes and they're only little for a short time. 

Susan - The short answer is normally the liens are wiped out by the tax sale, and subsequent quiet title lawsuit. 

If I were you, I would make my primary short term objective to analyze as many deals as possible to understand what is out there to come up with a realistic target.

Long story short, I finally got a house under contract after two years of following bigger pockets and being interested in real estate so I am excited about my progress!