I don't think investors understand that in many foreclosure situations they are going to lose interest for sure and principal ( very common). the thought that 20 or 25% equity is enough coverage to alleviate a loss does not play out very often in a foreclosure situation.

Purchase price: $165,000 Single family condo that I purchased using my VA loan What made you interested in investing in this type of deal?

Set this up by doing the math and getting the right loan so that your place nearly breaks even after a capital expenditure account is paid (for those big ticket items). 

I've had no problem as long as the loan was over 50k after down payment.   

There are lots of options for assumable loans in the outskirts that might be worth looking into

Here is her current situation, if you can help me understand a bit more. - both husband and her have w2s, she would quit her job to focus on RE full time. - they have 3 local and 3 out of state long term rentals.- the 3 local need a lot of work, she has been cutting rent due to not having updated flooring, appliances, etc.

Response to #3: Ideally you run it through the new LLC but for the purposes of the loan, it may not be required.

Hey James, You may be able to structure this on a DSCR second position loan, without having to touch your first. 

I have a portfolio loan and am paying it down but need to sell a few properties.What if the home sells less than the release price but I have paid a lot of equity into the portfolio loan?

It is a well situated asset in the neighborhood in which I operate.