You might make a couple more bucks, but any pet accident will wipe that out real quick like.

Because I am in the very beginning of becoming an REI, I'm inching my way with baby steps and establishing a plan.

Guaranteed rent baby!

Newbie REI here however I have spent last few months learning and taking baby steps. 

The foreclosure process will wipe out junior liens. 

Also are you sure that at the Judicial level of sale that all the liens are wiped out, i know there are different levels there, and i know @Steve Babiak has explained it before, but i always get them mixed up, sorry Steve. i would think that the medicare lien would have to be paid and removed from the total of that would be given to the Estate.

The best return is to always go with a pain point financial (foreclosure, bankruptcy, liens), change in familial status (empty nester, new baby, divorce), vacant property, etc.

Spending $25k in cash to wipe out zero interest rate debt is tremendously wasteful. 

If the borrower defaults, that note will be easily wiped out because the first will accrue interest, late fees, and foreclosure cost.

Hopefully that doesn't completely wipe out the positive cashflow.