There are additional options at that point, such as rehabbing and flipping out the property to pay the first and keep the profits, renting out the property (especially if the first’s payment is less than rent), and so on.What you described is the worst case scenario that could happen, although it rarely does with the type of asset you’re describing, especially if you’re due diligence is accurate.

A foreclosure could have been caused by the economic downturn, in combination with sub-prime lending ... there was a lot that went on that a lot of people were affected by. 

Its rare for a Commercial lender to go that [email protected]

I very rarely get in my car after a lease up - I make phone calls and every person I use for repairs gives me a progress report.If you already have property management experience, why buy the franchise?

In total, I would like to place several hundred thousand and combine that with money I raise from others increasing my returns.

I think a passion for the business, combined with hard work and surrounding yourself with the right team and mentors are the key ingredients.With respect to real estate crowdfunding, you should search the discussions and forums - there is a wealth of information from folks much better informed than I.        

Its super easy management and if I do have turnover, its 5 mins from my house which is rare when compared to all my other rentals.

Our combined income is mediocre to say the least (85k/year, soon to be 95 - 100k) and have one car payment (300/m) and some cc debt (10k).We felt that we had a a unique situation on our hands because of the equity we have on our home, so we decided to do some researching in Real Estate investing and came to the conclusion of doing a HELOC and investing in SFH in Lancaster or Palmdale, CA.Chase, our lender only approved us for 40k with the condition to pay off our debt and car loan which only leaves us with around 6k.We are thinking about Lancaster and Palmdale because there are some properties that will fits our budget and fall within the 1 - 2% rule.Any advice?

Other info/concerns:It has a tile roof (rare for my area), can see some chips from the ground.Nice neighborhood.  

The combination of them should get you moving in the right direction.