Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

If you’re interested in assuming a VA loan, you will be required to purchase the home in your name and have enough cash to cover the seller’s equity in the home.

It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.

The property can just about cover the refi in year one.  

There will also be a new front deck (and back deck eventually), and a small covered porch with a hipped roof.

That leaves $400 to cover taxes, maintenance, vacancies, etc.Now, let's pretend ALL your expenses come to $2,600 and you have $400 left over.

At this point, I would recommend having a line of credit to cover these things so you don't have money sitting in the bank doing nothing when it could be put to work.I have 33 units, no debt except for mortgages, and excellent income.

But if you have an owner-occupied policy while not actually living there, then you don't have the right insurance and may not be covered.

Since all parties are willing and cooperative, still use an attorney to draw up paperwork that covers all contingencies and all parties' interests.You'll be glad you did.