If the tenant has low net worth, a court judgment is practically worthless.Taking a week to vet a tenant can save months of headache.

The first option is to keep the condo, which offers a low interest rate and predictable cash flow.

The truth is that New Jersey, especially Northern New Jersey, is a tough investment market due to low inventory, high competition, and high taxes.

The problem is these homes are 60-120 years old and because of the low value neighborhoods, nobody has ever made any capital improvements beyond duct tape.

I could see fully comping 1-2 nights at low season rates, particularly if one doesn't have a lot of reviews yet, but would you, as an established host with tons of reviews, comp a full week or more of a prime season stay? 

The reality is that with the super low inventory we have sellers don't have a reason to give you a 50% discount, so your numbers get squeezed and you will end up leaving cash in the deal.

Is there a way I can take on the current mortgage payments (at the low rate) and get a new mortgage to make up the difference between the existing mortgage and the current value?

I think the dead giveaway is the rate and points. 5% is too low for anyone to lend now.

I agree 15 years is not a long time but what is occurring is jurisdictions then pass laws to protect the low cost housing.  

I’ll still try to answer the question: Pros of Kansas City for buy and hold small multifamily rentals:  Hybrid market so you get some cash flow and some appreciation (con if you want only cash flow or only want appreciation) Inventory of 2, 4, and 5-50 MF buildings (not true of a lot of markets that only have SFH and very large complexes 100+ units)Relatively low property taxes, although check for the city and state you are in (e.g.