This was fine because as the owner of the house, it was my responsibility, however, it decreased my profit at the end when he did end up buying. 

Is it better to have the highest basis possible to increase depreciation and decrease the amount of taxable gain at sale?

Also, if interest rates go up that high cap rates will have most likely gone up, decreasing the resale value of the property.  

Again, I'm concerned about demand decreasing going forward counter balancing the upward pressure neg interest rates should have.  

Source: Washington-demogrphics dot comPopulation is decreasing and the median income is slightly rising.

I've contacted a few sellers, and they are motivated but valuing a property when the rent has decreased 50% in one year is difficult.

Thanks for the input, no doubt a good strategy to decrease time invested.

If you are only putting down 5%, it is riskier for the lender because that decreases their margin if you default.PMI should drop off as soon as you have paid the principle down below 80% of the contract price.I would think in general it would be best to avoid PMI, but it depends on the situation.

You can look at decreasing office occupancy and decreasing sales tax receipts to see that the high end is very much dipping right now and will likely continue to dip.  

Thus, the incentive to pay all of the rent on schedule in Las Vegas is very strong.Population TrendsIf people are moving out of an area, housing prices and rental rates are likely to fall due to decreasing demand.