not sure how it's done by you but in New Orleans when they get ready to auction off the sale the auctioneer will read off and let you know if there's outstanding balances.

I would have to bring about 60k to get the loan balance down enough that a 4% loan would bring cash flow to breakeven.

In both of your scenarios above, the 10% preferred annual return is cumulative, meaning if there is not enough profit for distribution in any year to reach 10% annual return, then the balance is carried forward to subsequent years until it is paid, correct?

So any ideas on which code violations would offer a profitable balance since the cost of my data is monstrous.  

If you estimate what the interest rate was at the time the mortgage was recorded and the term of the mortgage (most are 15, 20 or 30 years) you can estimate the loan balance if the payments have been current from the date of the recording.

I would gladly pay income tax on the balance of my mortgages if my loans could be forgiven.

Here are my stats:Primary House: $610/ (mortgage) + $385/ (taxes/insurance)-Home Value: $160k, Balance: $65k-15 yr loan, 2.9%Rental House: $400/ (mortgage) + $350/ (taxes/insurance) <- no escrow-Home Value: $130k, Balance: $75k-30 yr loan, 4.5%-Rent: $1500/ (have only received 1 months rent so far)My husband and I bring home $6750/ and have excellent credit.

This is straight from HUD:“Effective for all loans closed on or after January 1, 2001, FHA’s annual mortgage insurance premium will automatically be canceled-once the unpaid principal balance, excluding the upfront MIP, reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule and pursuant to instructions contained in ML 00-38.

Mortgage balance is the same. i think his payment is around 1200/ mo, and rent in the area might go for 1500/ mo.

Im not sure how your local market is, but if it was me I would find a balance of investing and living.