Basically, I feel like I've survived the worst of it and I'm approaching the break even point so I should stick with it to reap the rewards on the other side rather than cut my losses.  8 years in the red, but 20+ years making decent cashflow.Thanks again.Andy

@Jennifer Pereira - that was a very rough conservative approach.

I think the approach I'll take is to leave my money in stocks and start saving and building up some capital to invest in a rental property.  

But in the case I find a buyer on my own, what would be the best approach?

This property is located in Southern California so I am not sure what would be the ideal approach to make things go smoothly with the law here. 

I’ve been approached by a friend (call him A) to be part of an LLC company that would buy properties for rehab and rental.

I wanted to know what would be the best way to approach this strategy?

Beyond that, I like your approach starting slow and trading up to bigger assets.Good luck. 

With that being said, I would approach from the angle of building a lasting business relationship with the individual.

After notice, an owner may not further encumber the property, they may not grant any interest in or to it except in a sale where the mortgage in default is paid.If you were to pay her anything, it would be equity stripping, same with any rents received above the note payment as all interests in rights to the collateral become due to the mortgagee.If a bank allowed a mortgage to be brought current and allowed her to rent, of sell, that might be different, this bank won't I'm sure......this is a "sorry & walk away" if you can't buy it.