I'd encourage you to consider investments in the Seattle area; although, you may want to reconsider the Mixed Use and Hotel asset type.

This investment has increasingly felt like a financial burden.

Thomas:First of all, I would say the 1% rule is a rule-of-thumb from immediately-post the Great Financial Crisis.  

You've already outlined that besides the animal, the tenant is qualified financially.

I provide them with financial information and company performance updates.

If you can find some that make financial sense for you and your husband it’s just money in your pocket each month and if you put them with a good property management company then there won’t be all that much for you to do regarding them.

This asset class seems to require more touches with management than other classes.  

If you do, you can develop a wonderful passive income portfolio.If you don't your habits will ultimately result in the total loss of all the assets you have in your name.Sorry for the harsh love but that is a reality you have to deal with.

At foreclosure auction, no other bidders met the full credit bid the lender required and the property "reverted" to the lender.Said lender now owns the property on its books, which was formerly a mortgage asset, it used to be termed OREO ("other real estate owned") by bank auditors because these were not assets intended as buildings used by banks for retail offices, etc.A lender that (now) owns a property inherits all the senior liens, if any, as well as property taxes (both current and delinquent) as well as the ongoing issues with possession and maintenance. 

So this is why this strategy is coming up so much one because of why you want to do it taking over low interest loans and when markets start to have issues and owners have financial issues.the KEY is finding sub too ANY EQUITY a lot of folks doing sub too will over pay just to land the mortgage to me thats not a good bizz model every deal we did could be flipped day one for a nice profit. other wise we passed.