I know this varies by market and individual note, but what is the typical range of loss of principal when there is a foreclosure (i.e.

We can't determine the amortization from the post but that $175 will erode from increased insurance costs and a need to match principal pay down.  

Judging by the small reduction in principal, I would venture to say there is not much hope for reinstating the borrower.  

If CAP rate was something you should really be focused on, which, again, it is not.Assuming 20% down, your principal and interest payment alone is going to total more than $10k a year.  

I believe that a few people have spoke about these things, so I won't get into that.If you assume the mortgage payments under the original principal (who is no longer with us) the lender assumes nothing is wrong if they continue to get payment.

Offer to lease option the property as a principal and assign the deal for 3% fee 3.

(@Steven  Hamilton II could provide clarity), but here in Canada, the vendor would have to declare a certain percentage of the sale each year over five years, regardless of whether you paid that amount of principal each year or if you paid only/primarily interest with a balloon payment at the end.I would explore this before going to a conventional lender to carry a primary (1st) position for 75 - 85% LTV.  

Thank you in advance:When roughly calculating the 50% rule, specifically, principal and interest, do you always assume a 20% down payment?

@Jason Hernandez  Having a license in OH and in FLA is really helpful.The Dept of Real Estate in both states look at entering into a lease option with the intention of assigning as BROKERING.So buying sub2 or on land contract or a wrap, then lease optioning as an exit is the way to go.You could also do a sandwich lease option, sub lease and sub option, with the INTENTION of staying in the deal as a principal. 

@Sean Stewart I enjoy Joe McCall very much.If you want to act as a principal in a lease and an option, and your INTENTION is to assign the deal, I would be a licensed agent.Or have a licensed agent show the house.There are brokering laws in MD/DC/VA.Also, think of getting title through a sub2 first and exiting as a lease 2 own.