At that point they had a choice:1) Renegotiate with the current homeowner to start paying the mortgage again (possibly at a reduced value because it was the mortgage was purchased at a discount).- OR -2) Wait for the homeowner to miss one payment and foreclose on the property, thereby buying something for a deep discount if you don't mind going through the courts to eventually own the property.Has anyone seen this type of negotiation/deal with lenders?

I am asking this because that reduces my future cash flow assumption considerably.Let me know your thoughtsThanks 

In most cases I disregard outstanding student loans and medical payments.I consider the minimum gross income to be 3X rent.

I'm trying to reduce taxes payable by my llc by having shareholders loans count as an interest deduction. 

I have recently obtained my real estate license while being in the medical field for over 12 years.

If costs are high, how can I approach lender to reduce?

Even if you are "losing" some money per month depending where you live,  your housing expenses are still reduced by tenant income.

Factor in things like vacations, replacing the car, medical expenses etc. 

., is that these homes are cheaper, reduce the need for architects, various contractors, and dramatically reduce building time. (10 weeks from start of fabrication to final completion on-site).

Hi @Varinder Kumar,Take whatever you are preapproved for using normal FHA, reduce that preapproved value by about 40%, tie it up in contract with a 60 day close for a purchase price at or below that reduced amount, and then go learn the nuances of 203k and decide if you want to do it or not during your inspection contingency period.