I have been extremely interested in real estate for many years now.

My guess is you need to purchase for like 20% of the UPB and restructure the note so that the payment amount stays the same but the term and UPB is reduced then it would be marketable to a note buyer.Again I don't really know but am extremely interested in finding out since I am just starting to look into note buying.

That is extremely helpful.

I think of myself as frugal (my wife would use another word) but this guy took it to the extreme.

My instructor was a extremely knowledgeable commercial broker with quite a portfolio of real estate himself.

Your example as-is creates negative cash flow.For beginning investors, it's extremely important to look for positive net cash flow.

It is also  extremely important that you are workng with a Realtor that knows how to deal with HUD.  

I am unaware of the condo fee’s but barring they are extremely high it seems these very well could be good cash flow properties if bought at the right price.

This is extremely important.

I know lease options are a "touchy" subject but I am very determined to investigate this technique in that this is of extreme importance to me and my brother's financial survival.