Did they give you the option of closing at 4.8%RESPA(Real Estate Settlement Procedures ACT) got revamped last year and has caused many delays on many loans because of all the red tape that has to be complied with.

(I’m not trying to over-simplify, there are many rules you have to comply with behind these investments.)

Plus, if you are looking to "add value" to a property you have to be aware that some of the hurricane regs are expensive to refit, or comply with, on the rehab front.My thought, if you are looking at a long term hold FL still has good pottential; who doesn't love palm trees and sunshine.

Ryan, as Justin just pointed out, most states, if not all, including CA, state that any contract is assignable (even if it does not satte "and/or assigns") UNLESS the contract specifically states otherwise.So, if your contract did not state that, "this contract may not be assigned without the written consent of the seller", then your buyer did not violate any rules or laws or the contract and you must comply.

And remember, each state you operate in has differing regulations that must be complied with!

If a real estate attorney does not like that verbiage perhaps you can call it a "hold fee" and if the tenant does comply with the lease terms the "hold fee is converted to the security deposit."

>What you do after purchase is irrelevant to the financing at the time of purchase as long as you comply with the lenders requirements to maintain the asset.

As states bring on their own regulations to comply with the SAFE Act, HUD will yield to the state if those rules are satistfactory, so check with the state.

In those cases, IMO, the LL should require the business, just like requiring any other tenant to live within all laws and ordinances, to follow all laws required for the business: proper licensing, check zoning to make sure it is allowed (some municipalities might not allow day cares in upper units with stairs), check and see if the unit complies with any local ordinances applying to a business (there could be additional parking and egress-ADA, for instance.

I use these forms:http://www.htspc.com/documents/Eviction_FormsYou need to be sure your form complies with your state and local laws.