@Rod Witmond Yes, it's an interesting business model.

. ;) The owners literally use a bank for a few months until the bank catches onto their business model, then they switch to a new bank. 

All this being said, anyone have a calculator is is there a model where I can plug my assumptions out there.  

Our main model is to keep people in their homes and do loan modifications.

This particular one doesn't fit that model but I'll do any deal that makes sense.

Very helpful, thanks for offering your advice and expertise Darren!  

I live in NJ and am frustrated and tired of looking at properties in the local investing model.

I realize this model doesn't scale very well beyond more than a few houses at a time, and only a handful per year, but at this point in my life, I'm ok with that. 

When you do those interest calculations, you neglect that the 10 year note model costs you $72,000 over 10 years in potential cash flow (very simply multiplying current monthly loss times the number of payments, I understand that this is overly simplistic).

It just doesn't fit my business model.