This also allows for a newer investor to network, partner, and build relationships with lenders early on, so they are not stuck trying to find lending options that will consistently throw them high interest rates and higher origination fees. 

Like @Stuart Udis said, most of the time its more cost and time effective to do cash for keys and throw a few grand to hopefully vacate so you can change the locks.

Throwing mulch on the top isn't going to do anything-it is what the soil below the mulch is doing that determines how the water will flow. 

You can find videos/articles online on how to get the basement dry, but the basic process is: 1) turn off all electric to the basement (to avoid electrocution from the water), 2) run pumps to get the standing water out of the basement (sounds like you're already doing this)3) remove all furniture and items from the basement,4) once you've pumped out the standing water from the basement, rent a wet/dry carpet cleaner/extractor from home depot, and use it to extract as much water as possible from the carpets (they'll be much lighter and easier to move once you get the water out). 5) After you've used the carpet extractor to get most of the water out of the carpet, remove all carpet and get it out of the house for drying (if you're trying to salvage the carpets), or throw the carpet out.

@Oleg Sergienko,Thank you for throwing it out there!

Throwing around the idea.

Cash for keys is like a failed government program: throw more money at it and hope the problem goes away.If you take on Section 8 tenants, it would be wise to understand the program.

. $500k becomes $350k and throws off taxable NOI, etc.) 

I'm a bit late seeing this post, but wanted to throw in my two cents since this is where I live! 

For example, you could find deals that have good long-term potential and buy enough money down so they throw off a bit of cashflow, but not so much equity that it limits your ability to scale.