is currently 698.84 and droppingI have seen other properties for rent in my community at 750I may have a good renter (friend of the family, who happens to be a home painter) lined up for somewhere between 700-800, so lets assume 750 for the discussion.

Generally, if you do EVERYTHING right and assume 100% financing (but very low LTV), that will be about $100 per unit per month.

Let us assume that the bank wins the bid.

But, maybe the reflects timing of different loans rather than different states.You should always assume you will have to pay one term of insurance when you buy.

A hard money lender will go up to that $230K, assuming $230K is only 65-70% of the ARV (probably closer to 65% for CA, from what others here have said.)

I was lucky enough to sell my house to my tenant ('87) as it had a fully assumable VA on it.

What are the chances of trying to purchase the property (i will be the principal) during the time of the Trustee sale (i will attend sale to track the sale) and before it is listed as an REO assuming no one buyes it at the Trustees Sale?

First off I am thinking this is a bad deal for you.If he is being foreclosed on, on another home then why would you want him to essentially assume your mortgage, apparently he has a hard time making payments.And the whole bit about him making the repairs sounds good but it is only as good as his word.

Assuming your marginal tax rate was a combined (fed & state) 33%, you would get back $1919 on your taxes, assuming you had income and paid taxes.Speak with your CPA on this, as there are several different strategies that can be used, and there can be depreciation recapture, depending on each situation.

I think there are several routes you could go here, the first is to sell your vacant lots (assuming the market allows you to do so) and then buy your new home with the cash proceeds.