Yes I understand it's to make money, but could you elaborate more please?

But again if your dealing with low value and your OK if your title is buggared you just give the  buyer back all their money that probably works.

The equity she wants is $55,000, which I don't have in cash fully, but I own a home now with that in equity, and I have money in an IRA. 

Not trying to be a dream killer but there is simply no money to be made in the D.C. no cash flow, no margins to flip, labor either to flip or just hold a property is insane, the money was made years ago, even going forward I see limited appreciation, investing is HARD everyone these days but to the extent there is money to be made you have to go to places that haven’t popped yet.

If you are serious, this will be 100% worth whatever time and money you spend to do this. 

You'll have something to talk about, and you may even get money for the deal.

The bank from my understanding will be writing off a loss on this loan as there is not enough money to go around.Here is where it gets interesting, there is a second lien on the properties from a seller of a hotel that the current owner of the 21 unit bought seller finance. obviously there is not enough money to get this guy paid off as the bank is already taking a loss.

As a seller, financing can make you a lot more money, but gives you risk.

. - not a lawyer but I know someone in a similar position who acted as a private money lender (silent partner) on a rehab to generate passive income.You could also look into the many turnkey providers to sites like Realtyshares, Honemestors, etc who will provide you with a K1 for passive income.

Lease also states, that any money received from the tenant will first be applied to any outstanding bills.