It would take you almost two years to see a return.You should also consider things that would extend the life of your rental.

I would note that your closing time is going to be extended for both the short sale and the REO.

After running into a couple of hurdles in getting the financing underway, I was forced to ask the seller to extend the closing for 2 weeks.

If someone has dug out the crawl and extended the basement, make sure that the main beam is still sound.

It was PVC to the street, connected to a cast iron Tee under the house, which tied into the original bathroom and ran on up to the roof vent, then a pvc run had extended to a second bathroom from the Tee.

Meanwhile, i have buyers who want to close and have extended for a few weeks waiting for me to work out this problem.Meanwhile my lender is dragging his heels along with what appears to be fully confused on what to do.   

In addition to gutter cleaning, regular roof maintenance (hopefully on a roof that isn't flat), HVAC, and boiler maintenance will help extend their usable life.

Duration on these notes can be any duration, up to 30 years so you don't necessarily have the constant turnover that you do with HML.Some note holders will also sell a series of front end payments from their note, you get a little lower return but you have a lower ITV as well and you can choose how to ladder your portfolio.  

You are no longer in the deal and you did not extend seller financing to the buyer.  

50% of the unpaid balance can be had with performing firsts, if this is non-performing it's not as attractive but without details I can't say avoid it either.Reinstating a mortgage comes under the same rules as making a new loan, that is what you would be doing, you're extending credit and that may require a mortgage originator/attorney.