Hi Emmanuel, Without knowing the specifics of your situation ( income and debts) the answer is it could and it couldn't. when buying a multi family home the down payment is 25% for a duplex 30% for 3-4 units. obviously if are buying a rental property, potential rental income will be factored in.  

Owner said has long term tenant on one side of 9 years , building has had  great rental history.  600*2=1200 monthly1200*12= 14400 yearly taxes/insurance =2800 yearlyrepairs/maintenance 10%= 1440vacancy 10%=1440 14400-2800-1440-1440=8720 NOI20% down on 99000 @ 4% interest 30 years =19980 mortgage payment roughly 382 a month /382*12= 4584(NOI )8720 - (debt service )4584= 4136 monthly cash flowcash flow 4136 / (money invested) 19980 =20% ROIAm i missing anything here ?

Our commercial loans are based upon the exposure of the real estate, the income stream being generated from the property, and the probability of the borrower being able to refinance into permanent debt.

Assuming you are not talking about an hoa foreclosure, in which all mtg.s and liens will remain......For bank foreclosure, property taxes and hoa debts will remain.  

In order to evaluate what is best for you financially you would need to have projections on what the potential business could earn vs what you could earn strictly renting it out. 

What I'm actually asking if you were to wholesale a pre foreclosure does the new buyers cash go straight to the mortgage company to settle the debt or to the seller then he is to settle his existing mortgage?

It is certainly possible to combine a primary residence exclusion and a 1031 exchange to completely eliminate most and defer the rest of the tax.However in your case with only 1.5 years of depreciation it might make more sense financially to simply forgo the 1031 portion and pay the depreciation recapture.  

I still have a years to pay off my lender ~23yrs at the rate I'm going, that is unless I can get creative with a HELOC or other ways to cash out to pay off that debt 

Hello Everyone,My name is Mark Horn, I am committed to achieving financial freedom in the next decade, through rental income and real estate investment. 

If you give money to the prior owner who was already in a financially unstable situation, it may not get paid and you will be in trouble.