The default rate is only 1% per month which is 12% annual.I assume there are more pages to that agreement

Mind you, with mortgage interest rates in the US being so much higher now (and seemingly for the foreseeable future), I wouldn't be surprised if LTRs in Europe would cash flow better than in the whole US nowadays (to be verified).This being said, I don't and would never invest in LT rentals outside of North America  as I wouldn't want to face unfavourable landlord/tenant laws as a foreigner.

Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

New construction can offer many incentives for interest rate buy downs.

They have always rented them at well below market rate and the repairs were made by the tenants.

Usually its because there is a lot of debt risk. when interest rates went up a year or so ago I lost over 300k in sydication projects I was a part of because I didn't understand this concept.

The truth is, over the last few years, many of these people are barely cashflowing at all and the default rate with the banks on this product is skyrocketing.

So why would we buy the cash flow at a rate of 6%?

The investment city determines rent growth rate, appreciation, and income longevity.What determines rent growth?

This alone is a significant factor in premiums going up (even when rates remain stable).