It was bought on foreclosure for $250K and is now prob. worth $350K- Top unit $2,200, bottom unit $1,200 a month.

Are your "investments" now a black hole of cash, leading to foreclosure?  

Yes you are right that if the borrower defaults your exit strategy would be foreclosure unless you want to sell your non performing note for pennies on the dollar.

-Cash out refi is necessary when you have multiple properties and it gets harder to find HELOCs....or you have a REO, foreclosure, short sale that you bought under valued and you need to re-fi into a conventional mortgage. 

If the person hasn't paid the mortgage for long enough for it to go to foreclosure (6-24 mo), there are so many fees the original mortgage has ballooned in cost.

I was targeting the foreclosure notices, expired listings from my wife's access and homes I saw driving around town.  

Print some STOP FORECLOSURE flyers up and convey a message that you can get them out of that situation.

I am looking for help and information in buying foreclosures.

They are government owned foreclosures that are open to owner occupants before they are available to investors.

Pre-foreclosures are best I assume.