I deal with these issues alot. loss of job =chance to buy coverage from any of the insurance companies. there are alternatives to that such as religious based alternatives which are actually affordable. look up ACA alternatives and you should be able to find them.

Vacancy: not sure what to put hereThis is what I'm not sure of with my 1st year ratios:Cap rate: 13.04% (I divided the purchase price by NOI) Now of course my NOI didn't factor in vacancy loss because I wasn't sure how to do that.GRM: 5.51 (I divided the purchase price by the GSI)Return on Equity(yr 1): 36%COC: 70% (isn't this rather high?)

I don't plan or even think about failing, because of my purchase strategy, but I have an emergency fund in place in errr when that time comes and by fail in my terms that means taking a loss on a property instead of a profit.

A few extras: (assuming buying in cash... financing would give me the cash on cash value) Purchase price (Once off) $87,000.00Repairs* $20,000.00Total Property Cost $107,000.00Closing costs $795.00 Rent (Monthly) $1,400.00Less vacancy & collection loss $70.00Gross Income $1,330.00 Operating expenses Property taxes $300.00Maintenance $145.00Insurance $50.00Management $140.00Total Operating Expenses $635.00 Net Operating Income (Gross Income - Total Operating Expenses) $695.00 Total Cashflow (NOI - Mortgage Interest) $695.00ROI 11.69%

Credit Scores - I've never seen this addressed in relation to homelessness, but how will people that are on the streets due to job loss, etc. be able to rent again if their credit scores have plummeted? 

At a 10 cap for resale would be 600,000 purchase price from your end buyer. 600,000 - 320,000 = 280,000 gross profit / 12 months = 23,333 a month value gain for the time invested.What you can or cannot do will depend on local, national, or regional bank and if they originated the loan or bought out a failed bank or from a FDIC loss share agreement.

I think you should look at your business in two ways: profit and loss part, and capital part.

They have a ton of money they have to put to work and are willing to take the loss for a number of years to offset their gains.

That can include some attempts of loss mitigation ideas like DIL or Sale (short?)

Why would they sell it to you at a loss, when they just have to wait for the auction ( if the process has already begun) to recover everything?