Just make sure your insurance carrier can get it done right.In either case, you will need to have solid paperwork signed at closing to ensure you have the ability to cash an insurance check if you ever file a claim, namely a limited power-of-attorney from the borrower to your title-holding entity.

Foreclosure listed at 68,000 with ability to negotiate (however only on the market for two weeks so far).

The ability to withstand any kind of downturn with sufficient reserves is a great way to keep yourself afloat and in the game.

Now, ab1436 is a bill that I’m sure will become law here in California.

I would then want to know if there are any access easements to the rail line or restrictive covenants on the property which would negatively impact my ability to develop the land.Lastly, my concern would be environmental.

This benefits me, because I'll still collect the rental payment and have the ability to evaluate the tenant before anything more long term is signed.

Appreciation is locked and cannot be reinvested, if you get a HELOC you are still arbitraging it, paying interest on it and taxes so arbitraging is not as easy as it sounds.Cash flow can increase income which provides more borrowing capacity and ability to reinvest that money.Again, not disagreeing as cash flow pays bills and appreciation builds wealth, but you have more control over cash flow than appreciation and if appreciation goes negative for a few years it takes a while to recoup.

Banks have the ability/authority to bid higher or lower than the mortgage payoff amount, and I've seen it done a couple times where they have, but for the most part, they will bid up to the payoff amount of the lien they hold.

But you better have nerves of steel, a decent budget....and/or the ability to do a lot of the fixes yourself.....Good luck!

I have the gray hairs to vouch for my experience.