Then their is the gigantic apartment for sale on Carroll but that is a no fly zone for me.Combine this with my post from the other thread on too much A-Class inventory coming on line right now and I think it would be wise to really sit down and figure out real exposure to risk before buying any multifamily around downtown or Notre Dame right now.Edit: The above was super negative!

Being it's a 33% vacancy and the rents are below value they said it's a no-go.

.  ;-)  Despite the fact it is a no-brainer to sell, it's still a difficult decision.  

@Jim Cummings update...it's a no go with PenFed.

I did new construction which is generally considered a no no by investors but I chose this path so that I could have 6 months to save up for the down payment while still getting in on today's prices.

Issue them a 3 day notice (or equivalent that's required in your state) if they don't pay rent by the time that notice expires evict them.......Problem solved.Also worth noting that a daily fee may be a no go anyway as most jurisdictions limit the amount of late fees that you can collect. $35-$75/mo is a common limit for properties renting for under $1,000.

After some research, it seems, there is nothing illegal about it, as long as there is not active knocking/engaging with the home owner, as well as staying away from communities whos HOA has a no trespassing signI get them all the time at my house, but they are usually for restaurants, which isn't offensive at all, which is why people probably won't complain and much as "I would like to help you sell your house if your house, etc"If anyone has any advice or knowledge about possible fines associated with this it would be much appreciated. 

If you do not care that they have pets in a property with a no pet policy your lease is null and void.

Meanwhile you can invest the $500k downpayment in cheaper markets.And yet another option would be to try to get a lease option deal on a Milpitas house that locks in a purchase price for say 5 years, by which time it may be a no-brainer to purchase if the market has appreciated, but if the market goes south you can treat it like a rental and walk away or renegotiate the deal (lower price).

The problem, I did a no money down VA loan, so I have no real equity in the home, and the amount of origination fees, funding fees, and seller costs would mean I lose on the deal unless appreciation saves me or I figure something else out.