But the potential upside of the more expensive building is massive, plus you get a higher overall ROI when you factor in all 4 wealth generators (cash flow, loan paydown, appreciation, depreciation).

Currently, we are at 12.75% interest with 3 - 5 points on the loan origination end; we haven’t been able to locate any existing mortgage notes we can buy of similar quality with ROI even equal to that.  

I've been searching online for trying to find a loan servicing company that provides the services in Florida.

It would if you refinanced a smaller loan later though. 

Stop the leaks, install window vents and or humidifier I have done dozens of jobs like this. 

So I’m thinking a home equity loan to build a very nice small rental?  

Conventional Condo loan requires replacement cost vs ACV.  

Here's a casein FL - Seller in foreclosure has 120k principal @4%, Shes 10k in arrears, house is worth about 250k, good condition.She wants to stay at the house, but doesn't mind selling it if needed.She will likely not qualify for a loan mod at the moment, good amount of equity.She works in the medical field, just took sick and fell behind.I was thinking of offering to pay her 10K in arrears and creating a 2nd mortgage @ 10% interest.if she defaults, i can foreclose,  as there is a bunch of equity there.any thoughts of a better scenario that i can make more of this situtation?

You can use rental income from other units to qualify for a bigger loan amount => higher purchase price.Hard to find in decent areas, so you'll be tempted to buy in Class C or even D areas.

In the last years, the rent amount on a BRRRR property has become the defining factor for the loan amount.