Motivation: He lost his job.

Your rental property should not adversely effect your DTI ratio unless the underwriter is lost on how to calculate it.

Lost it slightly under market value 

You lost me when you said, "...if I should discount the current rentals listed as they are the asking price which might not be accurate of actual rents out into contract".

He played a dollar machine and lost about $200.

The property I purchased mentioned above, the seller was horsing around with it for almost 2 years, and he lost track of the value.

Not sure where to go or what to do.I mean, I can go on craigslist, or 5mile, or some other classified aite, find a house, contact the seller, ask as many questions as possible, try to ACTUALLY go and See the property, try to INVISION the FLIP, have to get a buyer(s), if i I don't have one already, -where to get $$ for flip material-should I hire contractor(s) or try to do the work myself if it's small-what happens if it won't sell, or if I can't get tenantsthen I guess networking would come in handyThis all feels like it's all still in the Brainstorming Stage, and I'm a little lost as to where to go next.Sorry such a long post

Also means no calls saying they've been locked out/lost their key!

So, if after court costs, lawyer fees, lost opportunity costs, that whatever is left over when collateral property is sold at a sheriff's sale there is enough to cover your loan principal and interest, then yes, you do have effective collateral.

Unfortunately, thinking a TV report might make seller come to the table, I lost 2 months - all the snow in March delayed it.