@Elijah Barrad I believe he was referring to the $57k in equity that he retains after the refinance plus the $7k in excess cash he pocketed due to the refi amount being larger than he had into the property.

You need to go and find some local banks who have an appetite for that type of property in that area.

It's just a matter talking to enough bankers to find the one with the appetite.

You know your risk appetite, you know what the rest of your investment porfolio looks like, you know your own cash flow needs and retirement goals.  

Some investors with more appetite for risk might consider it. 

For a $100K gift, most likely there won't be a gift tax unless the parents have already made lifetime gifts is excess of $11.18 million. 

What does everyone do to get rid of the excess junk? 

Include information on repairs and or replacement of major systems.After the sale, pay off all your debts, put the payments and any excess from the rental sale into savings, and then strictly put yourself on a pay as you buy regiment for everything (does not mean not to use credit cards, just make sure you pay them in full monthly and are not charged to use them) except for maybe new rentals and automobiles (Autos only if the interest rate is 0% or less or equal to what you can get with conservatively investing the money).

Hypothetically, if the bank did choose to foreclose, how does the process proceed - Any excess would go to the original owner in which the bank signed the original contract with?

This seems to an appropriate place to share the following:A Comprehensive Wealth Management plan:1.Creates and Grows Wealtha.Assures that their investments are appropriate to achieve desired goals.b.Reviews their income tax situation to make sure they are not paying unnecessary taxes on investment income and excessive capital gains tax.c.Assures their life insurance is adequate in case of premature death.2.Protects and Preserves Wealtha.Reviews current plans for paying for the consequences of life’s unknowns.