I have been involved in short sales for quite a while and many companies were quoting an admin fee + percentage of sale price or exhoritant fees in excess of $1500 per file.

This could take a very long time as mentioned.Since the property is underwater the trustee will not have nay interest in holding up a sale since there will be no excess funds to help pay off creditors in the plan.If the property had some equity to neutral they might try to squeeze a little out and wait for the highest offer.If the tenants have vacated as mentioned then the property might become heavily vandalized just sitting there.The bank is at the mercy of the court and how fast they move.Usually the file is transferred from the loss mitigation to the BK department with the loan asset manager.The owner could still try for a loan mod or other workout while in BK with their permission.The bank gets them to sign in writing if they want to pursue this route so the bank will not be accused of collection activity while in the BK automatic protection stay.I think you watch this property but do not let it take up a huge part of your time.

I didn’t negotiate much on the price of them as they were cash flowing in excess of 12% for cash on cash return.Finally closed in december, a few days before Christmas (great christmas present).So a proud new landlord looking forward to getting into another deal or two this year to expand my portfolio.

They generally ask how many bedrooms, baths, kitchens.The engineer will say average cost runs XX gallons and XX amount per month.If you have no leaks and it is rising above that amount considerably then the tenant might just use excess water.If the tenant has paid on time with the rent every time then you might want to do this.

This is a good question that people on here should be able to give you ideas about what seems appropriate and what would seem excessive.

Why not make them equity participants, and "repay" them by distributing the excess cash flow to them?

Save excess income. 

HELOC's are also high risk and the bank/lender holding the line of credit can and will close or reduce your credit limit if you have any drop in credit score, missed payment, or added debts considered to be excessive based on multiple trade lines.Fix & Flips are okay but come with a tax liability but cash out refinance is tax free and you would be putting that cash into another property building your REI portfolio.

Would there be any excess left over after debt service to allocate for property rehab?

If a lender later sees that a borrower is "barking at them" over excess equity, the may make an attempt to raise the entry bid so that it is appropriate to make a good faith effort tor collect some equity for that owner.