A 5 year arm might be a bad idea in this case. 

And who lack experience, sophistication and are unaware of the dangers of Subject To for the seller, is like handing out firearms and bullets with no safety training. 

Financing provided through this program is only available for properties located in Michigan or Florida.Available Product Type: SOFR 7/6 ARM, SOFR 10/6 ARMLoan Amount: $766,550 MaximumLTV: Purchase and No Cash Out Refinance - Maximum 99%Prepayment Penalty: NoneLoan Assumption: NoneEligible Properties: 1-unit dwellings, attached and detached condominiums, PUDsEscrow: An escrow account must be established for property taxes, and flood insurance, if requiredUnderwritingNo Private Mortgage InsuranceOccupancy – Primary residencesMinimum Credit Score - 700DTI – Max 43% (UW/Mgmt exceptions up to 50% with minimum 3 documented compensating factors)Student Loans – If in deferment, no qualifying payment requiredDown payment of 1% must be borrower’s own funds, while closing costs and prepaids may be gift fundsAttached condominiums require a 10% down paymentEligible Borrowers – Protect and serve heroes are defined as employees of public or private education institutions, employees of medical and healthcare organizations, all first responders, and active or former military personnel.Servicing: Retained

I guess for me the dividing line is does it damage the function or cause a safety hazard if I leave it on the tenant.  

ARM (America's Rental Manager) has had all three of my Birmingham properties for about a year.

If things ever return to "normal", I'd fire sale my shiz and leave that arm pit. 

If a bank sells a note to Dion at 87K, they know he's in the business of selling, he sells for 95K to someone else, that is an arm's length transaction, the borrower had nothing to do with it.

If you do have an entity, treat is like your ex - stay as far away from it personally, do not mix funds and operate it at arms length. 

I'm fine with the money down and shorter term but the higher rates and the ARM I am not a fan of in general.  

Investors who have absolutely NO CLUE as to what they invested in, no clue as to the STRUCTURE of the deal, and no clue as to the safety or risk of their investment.