Success rates with collection agencies are extremely low, probably around 10 - 15%.In both cases, you are unlikely to get any money.

There is a BP book on investing with low or no money down you probably want to read.I also recommend practicing with the real estate calculators - getting the math right is the key to a “good deal”.Feel free to contact me with any questions or post them in the appropriate forum - the community here is great.

In addition, once you've freed up your equity in your current home and invested it in income-producing real estate assets, consider applying for a couple of FHA multi-family property loans (4 units or lease) which have competitive rates and low down-payments (3.75% at the time of writing this). 

If it's a small house in a low rent neighborhood put lipstick on a pig. 

High crime rates and low rated schools.

Credit low only due to card utilization.

How to invest in real estate with low or no money down

They look low, but I am used to duplexes.  

Can I buy a single family home with the intent to immediately rent with a low down payment conventional loan?

Seeking reduction of liability eventually with all homes in LLCS when rates are better for commercial loans or we BRRR these homes.