Generally, Superior liens remain while Inferior liens go away. 

House-hack again by adding another apartment ($1,100 or even better maybe adding two apartments $2,200) ..... use as little as you can from the remaining funds from the HELOC (preferably in the $50k range).

However, interest rates can only remain so low before the market starts to overheat, and with a stronger economy based on recent job numbers, the Federal Reserve Bank ("Fed") will inevitably start to revert back to a "normalized" interest rate target.Going forward, the Fed will probably raise rates at about 25 bps (0.25%) per quarter.

-Caveats the home is foreclosed.Step 1: Buy in cashStep 2: Get renter in it (1000/Month)Step 3: Refinance for 60k (I would expect to still be at a DSCR of over 1.25)House #2 Asking price 49,900, Zestimate 135k.Caveat this house will have to remain on the market for a at least 6 months (or I find something like it)This house is also a foreclosureStep 4: Buy in cash from refi in step 3Step 5: Get a team of contractors in to clean, and fix what is needed to sell for 135kStep 6: Sell low, as in place on the market for 120k but accept an offer for 110kStep 7: Pay off Step 3 and go find another distressed home to fix.Step 8: Make it rental if step 6 does not work (DSCR would be about 1.25 with this one too)Deviation could be the followingStep 6: Could also be Refi for 102k Step 7: RentStep 8: Buy two more foreclosuresDoes this plan pass the smell test or am I off on my numbers?

In the case that you are taking back over management from a previous company the lease terms remain in effect.

When I bought my current home, I was unable to use VA, since I didn't have the required eligibility remaining to cover the entire loan.  

@Kathy PattersonWith respect to RMDs, if the account does not have enough cash to cover the RMD, part of the property (enough to satisfy the RMD amount) can be distributed in-kind to you.

Therefore the tenant remains solely a tenant, just renting the property, until they choose to purchase.

In my instance the power is cut off to non-paying tenant and that bill remains theirs.. they cannot collect that amount from me..The power is then restarted in my name as owner and I'm responsible until I get new tenant for the power bill. 

So $6,250 is allocated to land and the remaining you can depreciate.