Its pretty easy for me to find cheap properties here, but ya know i loose out on having a 100000 dollar home.  

You are not bound to the loan until you get to the closing table.  

Since time is money and it costs additional money to heat and maintain an empty property, the longer the lender holds the property, the more toxic it becomes to them and eventually they will cut it loose a better price (I've seen it take 2-3 years for a lender to arrive at what I would consider a supported price on a particular property.

You don't want to scale up and end up loosing both in a downturn. 

I think you will answer your own question when you try to purchase NPN and try to make it performing.Expertise is worth a lot and education on NPN cost money and hope you don't loose any in the process.

Does anyone here have a gloomy outlook that we may loose 20-30% market value over current prices during to sudden inflation that resembles the curve of previous crash? 

Luckily my Economics Degree and shadow experience with other investors help me buy it right, and we didn't loose any money when we sold it (I was cash flowing through rent WHILE we rehabbed it #doubledip).Fast forward a few years, I bought a few more deals (mostly out of state) that were minor fix-n-rents.

This is how it reads: "All parties to this Note, including maker and any sureties, endorsers, or guarantors hereby waive protest, presentment, notice of dishonor, and notice of acceleration of maturity and agree to continue to remain bound for the payment of principle, interest and all other sums due under this Note and the Deed of Trust notwithstanding any change or changes by way of release, surrender, exchange, modification or substitution of any security for this Note or by way of any extension or extensions of time for the payment of principal and interest; and all such parties waive all and every kind of notice of such exchange or changes and agree that the same may be made without notice or consent of any of them."

@Christian Hutchinson I have thought about the expansion, adding a garage and master suite, the problem is the way the house is laid out I would loose a bedroom to gain acess to the new area so I would have to add 2 bedrooms and a bath, which still does not throw the idea out the window, losing this bedroom would open the kitchen up aswell.

Investing is already a risky game.. basing important investment decisions on what you 'googled' last night is always bound to cause problems?