If your property is worth a lot more than the debt you have on it you are likely better served from a ROE standpoint to either refinance and deploy the cash elsewhere or exchange to a larger property.

it is the only lien. the HOA late fees and fines combined.

I think you lost me in all of your paragraphs.What are the following numbers:In Place Rent:Existing Debt Service:Existing Peripherals (Taxes, Insurance, Association,Maintenance, Utilities):Property Tax Rate:Also... when you say you "put a ton of money into it"...

My numbers included debt service.

She has given me permission to handle this debt.

I am trying to figure out a way to have a mortgage on a property instead of having it free in clear with renters so that I can simply collect debt payments on some of my portfolio.

Should that not happen, then the trend that people have noticed - a decline in REO inventory - will likely continue.One other thing that could affect REO inventory that hasn't been mentioned much is the willingness of the lender to discount the amount being asked at the foreclosure auction (sheriff or trustee sale) below the debt owed.

You haven't factored in future vacancy, rent loss, capital expenses, etc. into your equation, which would likely take your expense ratio to somewhere closer to 45-55%, or earning about $1000-1200/month before debt service.Speaking of debt service, you mentioned a $75K loan, but nowhere in your post have you mentioned your debt service payments -- they will detract from your cash flow and cash-on-cash return.Not saying this is a bad deal -- I just don't think you've analyzed it correctly to determine how good (or bad) of a deal it is).

I've found the low prices and allure of large profits and improving the area from such low priced property is an illusion and the savy investor should consider areas with better economics before placing high risk bets in these areas.Here are some bullets on lessons learned:- If you have debt service and tax payments, you may not have time to wait and find those housebroken tenants as your expenses clip away.

That appears to be paying cash, so there is no debt service involved here.