Let me know if I'm misinterpreting anything, but as I understand it, you'll need to do the following (assuming the worst-case scenario in terms of costs):Front $45,000 in cash for the rehab+ $10,000 for wiping out the lien in the second position, and also obtain a wraparound mortgage for $95,000 to absorb the lien in the first position. 

Just keep on going and hope you will balance that bad experience on the next job or maybe go positive and learn any errors will hopefully not hurt you again. 

Supply side is most probably copper, though galvanized is possible.If you were planning to flip the house, you could apply lipstick and pass the need for a mid-life retrofit off onto the buyer ... though if your objective is to make a career out flipping in that markt, you might think differently.If you are planning to hold this property as a rental then it is in your long-term interest to upgrade as many of the building systems (starting with the envelope) as you can manage before applying the cosmetics.In your position, if keeping the property as a rental,, I would plan to upgrade the building envelope (walls to R23, roof to R40+), install a proper vapour retarder and HRV.  

Last time I was there, I met several Class A & Class B 100+ unit managers and they were very positive on the market but their one concern was market saturation. 

@Ryan Goggins,You are right we dont have enough information to know if this will have a negative or positive effect in the traditional market or not.

Three years appreciation and minor repair and paydown were flipped into a regular 30 year mortgage.It would never of happened if he didn’t know me and trust me to maintain and improve the property and if he wasn’t in a position that he was satisfied with straight interest and saving transaction costs.I think the NNN scenario has potential for a tired old landlord that wants to retire and still have cash flow, but only to an experienced buyer, not a nubie.

@Lisa Li You are starting the game in a wonderful position.

Overall, scaling up and not buying SFH is a better strategy for someone in your position. 

If you think that you'll have immediate positive cash flow, I'd go for it. 

You can buy notes already performing, you can make up your own note, the note can be in senior or junior position, the note can be short term or long term, amortizing or interest only with a balloon payment, etc.