Get in with as little out of pocket as possible and then take the balance and attempt a flip.

Interest caculated daily to an outstanding balance can cause different amounts, if interest is compounded and made a part of principal on a daily basis, your loan may not be in compliance for a residential property.Sounds you didn't get the type of loan you thought, I'd certainly investigate the note, your closing documents and especially the APR.

Having reviewed her credit report with her, she, in 26 years of credit history, had NEVER missed a payment and had ALWAYS paid more than the minimum on her balances.

Once that is achieved you can pursue growing your net worth on your balance sheet with much less pressure.

I would love your take on how to prioritize this list balancing the need to not invest too much $$ now, but balancing what will give us an ROI on our improvement.

It is listed as a short sale opportunity, but the mortgage balance is $182K.

Does it stay balanced through the year or are certain months slow for that type of profession??

Interest accumulated on the outstanding balance only.

If the balance in that account is too much, they can't credit back to that account.....they cut you a check or apply it to the loan amount, usually a check back to you.

A Mortgagee is only entitled to the balance due based on the mortgage/deed of trust and note.