When I first went, I listened to all of them, and was totally amazed at all the different possibilities.

@Tom GimerAh totally missed the part about the owner passing away in March.

We have a HELOC on our first property which we used to make the down payment on our second property (we have two total)

He said he was totally open to a creative option like this which was encouraging.  

I have been really struggling finding properties that meet that 1% rule other than total gut and remodel jobs.

I would send a hardship package asking for all income and all expenses and seeing if lowering the payments and adding all the late fees & interest to the total and going out to 20 to 30 years to see if that helps.

Keep a few things in mind: 1) Some lenders do have a 'seasoning' period, although mine was only 6 months and it wasn't an issue for them; 2) Your lender WILL conduct an appraisal (which you may or may not have to pay for depending on lender) to determine a new, current value; 3) They will lend an amount to you based on a total LTV (loan to value).

You deduct total losses after all deduction, including depreciation.

The good thing is that the 2 original houses have equity and the third house would have equity too.House 1 93k owed Arv: 125k950/mo rentTax$2,700/moInsurance $1,200/yearHouse 2145k owed Arv: 205k Rent $1,600/mo Taxes: $4,500/year Insurance: $1,200/year House 3 200k Arv: 275k No rental income Taxes 7,000/year Insurance $1500/year So the total costs would be about 438k.

The property is 8 buildings for a total of 64 units.