Dont mention the down falls of foreclosure or any negative writing to them, they already know that and dont care to hear it.Wait about a month and send another letter saying the same thing, but a little more in detail and letting them know you specialize in helping individuals potentially get of their foreclosure.

Thank you for pointing out the negative effects of the current system that I failed to mention as I think that it is more important to focus on those negative effects if we are to come up with a solution.

i think they are also going to look at your financial situation very closely to make sure that you can back the loan and that they can come after you if you default.i am in the process of completing a loan like this and i spent several hours with the banker grilling him with these questions because the whole issue of showing up on a credit report had negative implications for our investors, although they didn't mind guaranteeing.

With your expenses at $732 and many such as vacancy, legal, eviction, accounting, advertising, repairs, turnover maintenance etc. excluded plus a 5% return on the $100K equity at $416/month you risk ending up with negative cash flow.

Reality is that once you deduct the value return on the cash from the income all his properties are probably zero or negative cash flow.

Chris Mason can you speak more to the point on how it is viewed negatively when we pay our credit card bill in full every month.

You are also correct that HOA fees have a negative effect on price appreciation.

The negatives are that you may be shifting your focus from investing to a job, and may defeat the purpose, also when you are an agent you must disclose, and also have to walk a fine line of negotiating yourself a great deal, and if you should be looking out for the person you should be negotiating with. 

The charts below show the Raleigh area MSA (Metropolitan Statistical Area) general home price index over different time frames.

That doesn't hit the 1% rule and with CA taxes (that will go up after reno) you are sure to be cash flow negative each month, maybe by a lot.I see additional risks:$650k rehab budget sounds optimistic.