If you get defaulted on there's a good chance that the first is in default as well, which means to get your money you're going to have to get the first current, foreclose on your note and then sell the property for enough to cover both, plus a profit.Bad credit history, bad payment history means the risk is higher, which makes the return higher on a RISK ADJUSTED BASIS.

Worth area is a futile move.Granted, a good percentage of people do it FSBO because they simply don't have sufficient equity in the property to cover the 6% Realtor fee's but, as I teach/preach in my classes...

The $900 rent covers the 5.3% interest rate I pay for my mortgage, the $360 monthly maintenance fee, plus RP tax and insurance.

I remember one episode where the owners (a husband and wife) couldn't get their asking price, didn't have room to come down because of how tight the numbers were, and ended up putting the house up for rent and having the wife go back to work so they could cover the payments on this house.

If we leave one unit open for ourselves, the rent will still cover it even if we only have two tenants.

Initially I was thinking you could cover the whole cost of the new place with the HELOC, but that doesn't work out unless you use both your home HELOC and the other property HELOC.

The Title Company will give you $13,000 @ close to cover ANY shortfall in rental income vs. mortgage pymt.

Very low risk and we cover all the closing costs etc.

Also, foreclosures in the Seattle Area are difficult to come by for the following reasons:a) Seattle has a robust economyb) Highly knowledgeable homeowner basec) market flooded with savvy investorsNot to say that distressed properties cannot be located in this region, but you have to do your due diligence; require lots of research.Based on the info you provided, it sounds like you have the necessary funds to cover appraisal fees, order title reports, and cover additional loan fees, however, you just need to find a hard money lender that can fund your project.

You would be suprised how long it take to replace all outlets, switches, and cover plates in a single room as an example.