Secondly a 7% rate with 1-2 points depending on LTV, FICO, DSCR, and prepayment penalty does sound fair/market standard.

@Steve Rozenberg Fair enough.

Is it fair to ask the tenant to cover a piece?

I wonder if they're listed on there but have been occupied for years, by tenants who moved in when the fair rent was less?

Of course, fairly we could say neither did we.

I'm fairly new to the real estate game and currently have 2 properties; 4 bed 2 1/2 bath renters have been in there going on their 5th year, and a new 3 bed 2 bath we're looking into using for a midterm.I work as a radiology manager for Methodist and been with them going on 10 years.

With $170k to deploy you most likely will have that all in one, maybe two deals, if it doesn’t go well you could end up way worse off.That said, if there are other factors like the property is a huge pain to manage or you are worried the neighborhood may actually get worse or you know you need a new roof in a couple years, then I’d consider selling.Also, even though you said it’s not a high appreciating area, do you think 1-2% is fair?

There are too many ways for it to go sideways and only one way for it to work (you stay on good terms with your ex and everything goes perfectly with the house, you split the proceeds fairly when you sell).

I’m fairly new to the BP forums and BP site in general, But I have been very active on the podcasts and books stacking education and knowledge in the real estate field. 

I guess it's a testimony to BP that you're asking a bunch of strangers what to do with $200K.