Here's the graph, with explanations and assumptions below (for the personal finance geeks):REI Total Return - 3 years:Cash Flow: $25KDebt Paydown: $26KForced Appreciation: $50KMarket Appreciation: $30KTOTAL Return: $131K return divided by $215K principle = 61%SPY Modeled Return - 3 years:TOTAL Return: $38K return divided by $215K principle = 17.6%Definitions:Principle - defined as the total money left in the deal. 

The unit right below us has been empty since then. 

For example, if your parents owned a home and were contacted by a wholesaler to sell their home for $40,000 - $50,000 below market value, wouldn't you tell them just to put it on the market with a knowledgeable agent?

I analyze properties from the MLS and it usually says how much the current tenants are paying to rent (always way below market value).

If you want to jump right in then find a mentor, this will cut your learning curve way down.See answers to your specific questions below:1.

They have to have some equity to do it of course, but you can "sell" them on the idea by asking if they'd like a way to keep getting cash flow from the property without any of the headaches of management (which will be your problem as the new owner).If you're able to find an off market deal and buy it below market, you can also get "paid" part of the equity (again buying with a partner) for finding the deal.

I’m looking for a thirty-year fixed loan with an interest rate at 4.5% or below (I know it's out there since I did it three months ago) and I do not want to pay more than one point for the rate (ideally zero).

A few of the questions she asked me though are below.

The family does have the right to sell the property, so put it under co tract and spoke with the loan servicer (Novad) and ultimately had to have an appraisal done (surprisingly Novad paid for it) and appraisal cane back 20k below the payoff amount.

The below is pure speculation; I don't work in "loss mitigation" or have any insider scoop on it.With interest rates as low as they have been since 2012 or so, and given where appreciation has been, and the fact that when/if a home sells the title company will require that the lender (plus back interest) be paid off, it's possible that the 'rational' thing to do is let the interest accrue on the assumption/hope that there will still be equity in it at that point when someone dies/divorces/etc and sells.