If it doesn't, modify and review at that the next 90 day mark.

Purchase price, however, cannot be modified once a deal is acquired.

I've also used and modified a HELOC calculator spreadsheet from Vertex 42 that is quite useful in gauging this strategy with your situation.

When it does not accomplish their goals, which it won't, and landlords are forced to modify how they do business tenants will be negatively impacted.

If they get a wave of emails saying how hard this would be on Mom and Pop landlords, they will likely modify this, especially during a close election. 

Assuming we're talking about traditional, long-term rentals (and not STRs), there is a small taxpayer passive activity loss allowance for rental real estate of up to $25k if your modified AGI is $100k or less. 

Suggest you modify your attitude in business, learn the basics and related laws before you get into trouble.

It depends on how far into default she is - if they've initiated foreclosure proceedings it might be too late.And I doubt they will modify the loan that much (they normally just lower the interest rate, refinance the delinquent amount, and try to get the payments down to a manageable level).Even if they did modify it down to the current value (which is highly unlikely) - they certainly aren't going to modify it to the point where she has equity - then you'd just be hoping for appreciation during your option term (I assume?).

. - regarding the "higher than average tax return this year" - I suggest you modify your W4... no sense in loaning Uncle Sam money interest free.  

I just did a podcast yesterday with the incredible Ann Amagrande, and she was successful but unhappy as a flipper because emotionally it didn't align, so she took the leap of faith in her own gut feeling & pivoted into a modified buy and hold business that makes her feel great & that she's really helping people.So that is what I'd do. :)This is excellent advice, well thought out and covers all the bases.