If you've already got a quote from a lender for that amount of principal at that interest rate for the 12-month term you specified, that's awesome. 

If you could sell at the 400k you mentioned and only owe 217k that's a profit of 183k.

principal, interest, taxes, insuranceclosing cost will incurre Title and escrow.

For investment purposes, nope, there are too many properties to choose from where I would not owe more than its worth. 

The thing to remember about the risk is that while you do have $s borrowed against your principal residence, you've also have a free and clear asset that's always going to be worth something regardless of what happens. 

I owe 65k and the value of the home was 90k before I put a new roof on.

So I know we could cover our costs no problem, I guess I am having trouble foreseeing what will be the end of this once we are all in, as we will have rehab loans to repay and principal balance to finish paying at the end of the 2 years...Thanks in advance to anyone who takes the time to read this one...

She has her own home which her husband (who passed last year) did an int only mortgage and now it is time to pay principal.

I plan to get a judgement for the amount owed.

Once it is an REO are lenders generally pretty firm on sales price, since they need to get back what was owed to them, or at some point are they willing to take a discounted price in order to get it off of their books?