How risky of an investment would it be for you to get your 8-10% return, which would net 3-4% (assumption) taking out your student loan rate? 

The assumption is that it changes absolutely nothing for property B.

Purchase Price: 128,500Closing Costs + Working capital assumption: $15k ($7k + $8k, respectively)Total Basis = $143,500 Rent (operating income) assumption based on past rents: $15,600 annual ($1300/month) ($14,400 @1200/month)Expenses (annual figures): Property Taxes: $2,800 (on dwelling)Land Lease: $519Tax District (deductible): $1,009Association dues: $1,500 ($125 / month)Trash: $500Insurance: $1,000Net Operating Income (prior to debt service) = $7,300 approxDebt service (principal + interest): $7,000Cash Flow after debt service = +$300

But given what I know of the area I would say 76-80% would be a solid assumption given the current state we’re in.

Yet, as I outline in my new book which was just released, you have three things(I am making an assumption here but let me know if I am wrong) going against you financially right now. 

Due diligence is about confirming your assumptions and adjusting plans accordingly.

I would not apply a blanket assumption that all munincipal liens are wiped out in a foreclosure.

.* You're assumption around "the 1 year mark" is erroneous.

@Carl Fredrickson all those assumptions you made were right.

It is being lent with the assumption of honesty and of a specific amount of risk.