Need to eliminate that possibility.

As AllCash has already mentioned (you have quite a memory there 8) ), the PMI drops off at 80 LTV (loan to value)---based upon the figures you provided, your current loan to value is 88...There is no benefit to a rate and term refinance at this point, if your intent is to eliminate PMI...There might have been a time when comparing a refi option with LPMI (lender paid PMI) might be feasible, but in the absense of more info (and prevailing market conditions), you might be better off leaving things alone.Regards,Scott Miller

That will mean that you have largely eliminate the what you do not know you do not know.

You indicated a 5-7 year hold time, if you amortize that cash over that time or use it as a down payment to lower the monthly mortgage and eliminate the PMI this should be a positive cash flow deal. 8)

Once you identify in advance what market you are in, this will allow you to eliminate some of the other scenerios afforded to the real estate investor and plan accordingly.

Maybe if you do all the property management yourself, do all the maintenance yourself to eliminate labor costs, and you get very lucky with your tenant, you can earn some of those expenses for yourself.

We are behind now which eliminates the possibility of using the eqiuty in the home.

You're eliminating an unnecessary expense.

you nearly eliminate the chance of the tenant deciding to misuse it.

So if one was to attempt terms like this (I had been thinking about it a lot lately) The best way to set it up with the lowest risk from what I'm reading in your post would be to make the offer assignable and put some money down say 10-20% to help eliminate the risk of being upside down right out of the gate?