Consistent with DC prices, I paid $735k for it in 2007, and put about 50k in renovations into it over my eight years in DC, so my cost basis is about 785k. 

I believe you then have to make a few consistent payments at that lower credit ratio for it to go back up.

That being said, My wife and I both bring steady income consistently that doesn't fluctuate.Not trying to hit a home run with cash flow just trying to hold for long term retirement income but want to invest safely so I don't the carpet swept from under me.

They had to compete 10 mailers an hour which consisted of 10 handwritten letters and envelopes, stuffed, stamped and ready to be mailed.  

What does your investment criteria consist of?

That said, you can typically buy them at better yields, but you need to be prepared to deal with defaults.My advice would be to start with performing assets which are under professional licensed servicing and where a complete pay history can be provided which shows consistent payments and loan status is current. 

A combination of income (from rents and/or W2), equity, and cash reserves are what keeps you safe in the short term, and in this regard the quality and consistency of that income is more important than the quantity especially if you have a small portfolio.

It is a reverse mortgage foreclosure and agent said they are consistently countering offers at 123K and no one has bitten yet, but they are asking for a BPO to reanalyze the value.  

you have to be consistent in monitoring them because the good ones barely last a day.  

A handful of consistent buyers with whom you've built a trust goes a long way.