Finding the right contractors to renovate at a reasonable price and time frame is another very important factor, as well.

The letter ended by advising that I could send them a Qualified Written Request or Request for Information, but I needed to include a statement detailing the reason for my request.  

...is it the best or preferred way for some reason?

Thanks Jeff,Neither familial status, nor commute time is even remotely part of my screening - I was merely trying to paint the full picture about possible reason for bankruptcy (death of husband) and probably was overthinking all details. 

You could also get hung if you can’t refi later for whatever reason and the hml is going to want a large down payment.  

Your numbers seem reasonable to me.

Is there a reason you like this property specifically?

Where to invest or how far away depends on you, you can head upstate were prices are more reasonable or you can head South or to Midwest prices are manageable compare to our local market and laws might be more in Landlord favor..

Once values came back in line, I was required to unfreeze those loans, frozen for that reason.

Luckily, I had a good job through the recession and rented out a room to a friend, but I've often thought, if I had lost my job for some reason, I may have ended up losing the house because I had no equity and no real savings.