But both you and Ritholtz are exhibiting a fundamental misunderstanding of the way banks make their underwriting guidelines.

As I have found thus far there is no one size fits all model and your feedback exhibits that as well.

Agreed,Lot's of deals to be found in Ohio.Tougher nowadays but still enough to stay busy.Just to answer the OP's initial question also.Loosing on a deal in the first few years is risky business.When I first started investing in 2010 and back home in Australia, I built a large portfolio and fairly quickly.Lot's of debt...Monthly mortgages where costing me more than I was generating in income.It was a slow bleed so I decided to liquidate and move to cashflow friendly markets in the US (Specifically Ohio).In hindsight, those same properties if owned today would have made me millions in capital gain profits.So if you are looking for an appreciation play, make sure to have enough income from your W2 or other means to withstand the slow monthly bleed until the properties appreciate so much that you end up being in the green even tho you bled monthly.Again, very risky business IMO.Much success

I've never heard of this in Australia...

The countries that we administer foreign property 1031 Exchange transactions in our United Kingdom, Australia, Canada and Mexico.Hi @Nish Gupta, You can structure a 1031 Exchange transaction when a foreign investor is selling rental, investment or business use property in the United States.

Does it post to Australia?

I am located in Australia so not sure if that has anything to do with it.

Hi,I was born in Australia, and live here, and have dual citizenship with Europe.

For the purposes of this Agreement, the following terms shall have the following meanings: (a) "Execution Date" shall mean the day upon which the Buyer or Buyer’s Assignee to this Agreement shall duly execute this Agreement; (b) "Option Fee" shall mean the total sum of money paid to Seller in consideration of this exclusive Option, in the amount of ____________, plus additional closing costs if applicable, payable as set forth in attached Exhibit A; (c) "Option Term" shall mean that period of time commencing on the Execution Date and ending on or before ____________, 20____; (d) "Option Exercise Date" shall mean that date, within the Option Term, upon which the Buyer shall send its written notice to Seller exercising its Option to Purchase; (e) "Closing Date" shall mean the last day of the closing term or such other date during the closing term selected by Buyer.

Moreover, you did him a favor by finding a new tenant that limits his exposure of larger damages.If you are not communicating with the tenant, you need to follow Ohio law to exhibit that the tenant abandoned their lease with unpaid rents, reclaim possession, and re-lease it.Either way the tenant is fully responsible for lost rents which should be deducted from the SD.