I currently work directly with a buyer that specializes in purchasing REOs in bulk, NPNs (non-performing notes), and UPB (unpaid principle balance).

Your new balance sheet might look like:2 * 100k homes w/ 120k equity and 80k from the bank @ 7%.

Late or missed payments can create negative effects on your credit profile as do long-term balances on your account.

It is a balancing act.

I put a deposit down of 20% with a balance of payment (10% each time) schedule based on % of completion.

It is getting very difficult in this climate to do low to no money down deals.

If at any time during the term of this lease Lessee abandons the demised premises or any part thereof, Lessor may, at his or her option, enter the demised premises by any means without being liable for any prosecution therefor, and without becoming liable to Lessee for damages or for any payment of any kind whatever, and may, at his or her discretion, as agent for Lessee, re-let the demised premises, or any part thereof, for the whole or any part of the then unexpired term, and may receive and collect all rent payable by virtue of such re-letting, and, at Lessor’s option, hold Lessee liable for any difference between the rent that would have been payable under this lease during the balance of the unexpired term, if this lease had continued in force, and the net rent for such period realized by Lessor by means of such re-letting.

Some of these bills are monthly, others are quarterly; but, it can go quite a while longer before you, as the owner, know there has been a delinquency of payments when the bills are sent directly to the tenant and it is their legal duty, as per the lease, to pay.We have already discussed throughout Bigger Pockets how difficult it is to get blood (money) from the stone that is a deadbeat tenant, even with a judicial judgment against them.

The outstanding balance owed on this judgement is 322,442.From what I can see this person owes no other mortgages on this property.It appears that this person or a contractor was able to access this home and rip out everything.What should be our next step?

You have to strike a balance between the better financial returns of lower priced houses, versus the more intensive management they require.