As stated am new here, but will be contacting some of you for more info and to assist and be assisted!

I owned the 2nd, foreclosed on the borrower and took title to the property subject to the 1st.

This woman is also on public assistance which is what she will use pay her portion of the rent plus she has food stamps.

Yes there is a possible income tax liability, from a short sale or a foreclosure, depending on the borrower's financial situation outside of the short sale.

I say rent it out first because I wouldn't borrow money against a negative cash flowing property.

However there is no limit when getting a mortgage for a primary residenceStraight from the Fannie Mae selling guide:Limits on the Number of Financed PropertiesIf the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of properties that the borrower can currently be financing.

Thus far, it looks like most hard money lenders are charging between 4 and 10 points...wondering if others have had any luck in getting lower points...If points are non=negotiable, I'd likely borrow the minimum and use my cash on hand to keep financing costs in check.Other items to note include we have excellent credit and have a large amount of equity in our home of 10+ years.

I would appreciate all guidance and assistance that anyone can provide.

Heh... just had another thought... that if the contractor was this cheap to short-cut fill, the slab is probably really thin too, assisting in the breakage.

I am not borrowable yet, not long enough track record of rental income for FNMA.