It is essential that you have goals, short term & long term.  

So I guess the biggest questions for BP nation now are:-Do I have a case against the plumber and should I be thinking about suing him in small claims for my losses (essentially my insurance deductible)? 

(essentially returning that property to a decent cash-flow of $420/mo)OR...........B) Would it be better to take out a HELOC on the same property for the same amount (120K) at 3.99% with $75 annual fee, which I would use for the down payments? 

That’s why we choose to enhance asset value as our main strategy.Real estate investment combines two essential pillars: Equity & cash flow.

Valuation is essential!  

The foreclosure and REO process with a reverse mtg is essentially the same as any other mtg.  

But yes, essentially that is how it would be structured. 

Essentially we (my LLC which I'm 50/50 with a business partner) currently have 1 property in our portfolio.  

You would essentially assume payments of their mortgage and the property would be in your name.

If not, you may want to put something together that is essentially a proforma or business plan, along the lines of what others have suggested above.If you've done some deals already, it's rather easy.