. - Mortgage credit inquiries are not a concern, nor do they have a "hard" impact on your credit.

Good enough for a rehab but not quite for a purchase.We’re looking to get into “Fix and Flip” to increase capital and maybe BRRR it if the numbers make sense, but our ultimate goal eventually is to Buy and Hold.

Provided you have a lawyer draw up your partnership contract there should be no concerns.

Create a list of those that express interest and let them know when you have the deal.I would also add that you need to get educated as to what you can and cannot do as far as the SEC is concerned.  

I am not concerned about the money.

Now my concern is that the 1st mortgage may also foreclose and sell the property - and I would lose the property and the money i paid for it too.So can i offer to pay their balance and stop the foreclosure?

Push the 750 immediately to 725 and move the other up to the same over the next 8-12 months.Make sure you institute a annual rent increase going forward.

At a later date, if you decide to rent the property out, your depreciation will be larger as a result of the increase to your basis.

This tenant obviously considers this unit home, so unless there are concerns with them, see if you can keep them.With our current tenants, if they have stayed a year or longer and have been good tenants, we increase rent annually to 50% of the gap between current and market rent.  

The other concern I have is that at least in California, it's important to do everything by the books that way a tenant doesn't have the opportunity to come back and say "but that's not what you did last month".