John - did the foreclosure process conclude prior to BK filing and only the transfer of deed remained, or did the BK filing precede foreclosure conclusion? 

. = $(140,000)Step 2) Divid additional square footage by remaining sale price. 1000/$50,000= $50/sqftStep 3) Calculate value of Target property using original and enclosed values. 1350*100+550*50= $162,500This is a big difference over $190,000 you might mistakenly value the property at if you apply a $$/sqft equal to a base square footage.

I know the values of properties throughout Miami are inflated (due to foreign investors buying up everything, even at minimal CAP rates).  

The situation is that the home is under a lease for a remaining 6 months (assuming they won't leave earlier with incentives) prior to the time when I would move in.  

Banks are pretty real estate friendly right now, and as long as your credit remains strong and  you are buying with equity and cashflow, you should be able to grow a very healthy portfolio with commercial loans.To get some education, speak out a commercial lender to see what your options are.

This obviously will eliminate certain strategies from consideration.If we eventually build a portfolio of several medium to large multi-family properties my wife will assist with the management.The multi-family market seems inflated at the moment so we're willing to be patient if needed.  

On its own the Market decided to raise that rate last year and the Fed is behind on their desires to combat supposed Inflation by raising their rate.

If you want to know if your scenario would work, send me 4 pieces of information; Sale Price, Original Purchase Price, Depreciation (if any), Remaining Mortgage (if any). 

They are trying to make a sale and will not hesitate to give inflated numbers or slightly more aggressive figures to make the returns look better to potential buyers.I would also check to see what your break even occupancy would be so you know how much of a cushion you have until you start paying the mortgage from your own pocket.

Now that doesnt mean I think every property will go up in value, nor would I buy something that was cash flow negative...but we should not ignore the simple economic forces of inflation, and supply and demand.