Assumptions: Lowest Appraisal Loan INCOME AND RATE OF RETURN Purchase Price 154,900.00 Loan Amount 123,920.00 Down Payment 30,980.00 Estimated Annnual Gross Rents 15,540.00 Estimated Annual Equity Paydown 1,700.18 Estimated Annual Principal & Interest ($8,350.19) Estimated Annual Property Taxes ($3,000.00) Estimated Annual Homeowners Insurance ($746.78) Estimated Annual HOA Dues $0.00 Estimated Annual Management Fees ($1,877.75) Utility costs to be paid by landlord (if any) Annual $0.00 Lawn mainteannce costs to be paid by landlord (if any) Annual $0.00 Indirect Vacancy Allowance Annual ($) ($155.40) Repair Allowance Annual ($) ($621.60) Misc. bucket for costs per month Annual ($60.00) Estimated Annual Net Expenses ($14,811.72) SUMMARY OF RETURNS Estimated Annual Gross Income $2,428.46 Estimated Monthly Gross Income $202.37 Estimated Annual Gross ROI 7.84% ESTIMATE OF CASH FLOW Loan Amount 123,920.00 Interest Rate 5.40% Loan Term in Months 360 Estimated Principal & Interest ($695.85) Estimated Monthly Taxes ($250.00) Estimated Monthly Homeowners Insurance ($62.23) Estimated Monthly HOA Dues $0.00 Estimated Monthly - MISC ($69.75) Estimated Monthly Management Fees ($156.48) SUMMARY OF CASH FLOW Estimated Monthly Gross Cash Flow $60.69

I don’t know if there’s a legal way to terminate prior to the move in date... but that might be a small price to pay.

If they are Sec 8 tenants, HAP only signs a year long contracts, and the local housing authority has all the information on the start and termination date of the HAP contract.

Heat is but a/c is notFollow the rules exactly as required in the property code before taking any action Send a certified letter requesting repairs and demand they be completed in 7 daysIf they are not completed, you can make the repairs and deduct from the rent or move to terminate the lease

I would thank them for the notice that they will be terminating their lease on August 1st and wish them well. 

Neighbor is on probation for drunk driving and has a record of battery.

The lease says that they should be notified 60 days before the lease ends if the lease is being terminated. 

Unfortunately the time to terminate him was when he delegated your project to the back shelf.

I suggested points, an origination fee, and an early termination fee, all of which he turned down.

If you move forward and take option two and decide to terminate the current lease, even though you are spending money on the front side and risking the possibility of vacancy for a month or two, you'd make more money on the backend with raise in rent of almost (or just about) a 50% increase?