It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

The original contract and subsequent renewal options did not include an early termination clause, which would mean under current Florida law the landlord doesn't have to seek to re-rent or mitigate damages, in other words "a contract is a contract".

Their state taxes is flat at 5.1%There are ways to avoid or mitigate the taxes(as suggested by previous responders).You can do a 1031(suggested if you plan to keep on investing) or seller financing(installment sale) if you are no longer interesting in owning the asset but want a nice steady return.

Will he/she ignore that to always calculate in some reserves or will those mitigating circumstances actually be considered?

Just mitigating my risk as I'm already in the hole.

I don't deal with borrowers, I deal with loss mitigation firms, servicers, attorneys and property managers.

I see these 3 story units popping up in our area and they have all sorts of rent specials.. so I guess I would worry about people leaving for rent specials.. but if you are in an area were new construction of the units is not possible or feasible that could mitigate that risk.but do talk to an expert..  

We didnt have time to bring a mold mitigation contractor to look at it yet but from what we can see, at least 2 rooms and a bathroom in the basement will have to be demolished or gutted and redone after fixing the mold issue.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I’ve already learned so much, and want to continue learning so that I can mitigate my risks and be in the best position possible when it comes time for my first deal.