If the rent will cover your mortgage, just hang on to it and get a positive cash flow each month.Another idea...

I now understand the meaning of paying several thousand dollars for a loan and associated fees vs. trying to save that capital and being in a position not favorable when considering the IRS.

And how much is the minimum amount of positive cashflow you use as a standard to determine whether it's worth it to you?

They do not care if the deal turns out to be cash flow positive or negative.

You need to be able to do your own title search to ensure you know the liens outstanding and the position of the foreclosing DOT.

And simply explain to him that he's in a very unprotected position if this fiasco continues.

Yes, $400/mo positive cash flow.

See if they have a contact person or know the lawyer who handled the bank's position.3.

I would consider getting a mortgage on the house after it is rented out in order to free up the equity for other projects...but it wont be a positive cash flow.

If the landlord is not following the regulations they could be in a very bad position.