Bottom line: I would look at all files to see what people are dealing with because you just never know what will be an opportunity.

They'll be your best bet.

My initial thoughts are that you bought too high, have underestimated your renovation budget and, certainly, time line and, depending on how much you are refinancing, it's not going to give you much of a return on your money.

Once consumption is in line, you are open to rent reduction.

One property did have more severe issues that altered the roof line and waste water plumbing.

Hello,When you look at bigger deals financials, what line items do you always adjust?

I was smart enough to know I can't put the money in the bank and know somewhere along the line, someone would squeal, or try to blackmail me, and I'll be caught.

My a friend of mine said all I need to do is make sure the foreclosure is on the first line against the property and if the auction is won, the rest goes away.

If all you want is the 40k, then the HELOC Is probably your best bet. 

In your case (being from NJ) I am sure you are used to the seasonality of renters and vacancy.Also, current comps for my purchase are coming in around 65K (in-line with what you are seeing)Best of luck/skill and let me know if you have any other questionsAloha,Matt