@Conte Cuttino, I am having trouble following you numbers, but if you are making $664/mo in truly free cash flow after all vacancy, capex, maintenance, etc reserves are met, compared to your $107k profit after all commissions and taxes are paid, you are really only making 7.45% on your money.  

IQmodular (sp) is a Modular build company here in Buffalo. 

This unit has a converted basement, but we bought it that way, didn't build it ourselves.

@Rami LatifVery unlikely, the lienholder will refinance before the foreclosure,what will happen is it will sell at auction and hopefully will sell for more than what the first is owed plus what you’re also owed.anything over the 600,000 will go to you unless there are other taxes or penalties associated with the property .Good luck

Get rid of debt, build a budget, and save.

Buildings selling for example $300,000 which need $150,000 of work but the ARV is only $420,000.

There is money in buying raw land and getting it permitted for build with plans and flipping it shovel ready 

So, on a 540K loan,  the VA funding fee on IRRRL is .5% or 2700, escrow would likely be 3000-4000, whatever county taxes, maybe the finance company charges underwriting and processing maybe 1000-2000, and other fees you might have to pay ~1K.

I'm looking to build new construction in my area.

If you are close to retirement or looking to plan ahead I would recommend, Cashing in Tax Free written by Leslie Pappas.