My name is Marcella, Ella for short. 

Hey Michael, With foreclosures you need to wait 7 years in order to get a conventional loan (it's a different story if it is a pre-foreclosure, deed in lieu of foreclosure, short sale, bankruptcy, etc).  

If the block seems relatively quiet without much loitering, you may have a place where you can attract good tenants.  

I was recently approached by an investor I know to make a short term cash investment to help him obtain a property.

That newer asphalt, or when it is resealed or newly striped, looks pretty sharp (but then you have some costs and maintenance), but I am not sure the attractive lot would bring much more in rent nor would gravel drive off good tenants.Finally, I shovel snow with the body sled type shovels and it would knock me out without a smooth surface underneath like asphalt or cement, so with gravel maybe check how that would work with your snow removal system (be it shovel, snowblower, or plow truck)...probably gravel best fit for plow truck...Best of luck

The Numbers: The house was a short sale, listed at $200,000. 1962, all original interior, bad shape, 1500 sq ft up, and 950 down.

Hello, I would like to execute wholesale deals, fix and flip, find REO'S, short sale and probate deals.

What if they start short paying?

Make it attractive enough and someone might be willing to partner with you.

So, whatever that requires.Learn how to attract and partner with private lenders.