The lender will have to raise your rate high enough to not only pay all your closing costs, perhaps your prepaid interest, tax, insurance, but also to generate enough LC (lender credit) to pay for the UFMIP difference as well (refunded UFMIP - new UFMIP) in order to make your FHA streamline refinance a "complete no cost."

If the tenant doesn't have a bank account you can suggest alternative banking, credit unions, or prepaid debit cards if you're doing online payments.

Then you just send a written reminder a few days before each “extension” kicks in out of their prepaid reserves and hope you don’t get to where you don’t have enough to cover discovered damage. 

PrepaidsHomeowner's Insurance Premium ( months)Mortgage Insurance Premium ( months)Prepaid Interest ($28.50 per day for 17 days @4.75 %) $485Property Taxes ( months)G.

Just be sure to follow state laws regarding your escrow/trust account (where you hold tenants' security deposits, prepaid rent, etc) - Those normally must be held in a separate account and cannot be commingled with operating funds. 

Which is what you would have to do if someone has prepaid their rent but is in violation on other terms of the lease.

If he's on a 1 year, pre-paid lease and you find out 2 months into it that he's doing drugs in the property, you are stuck.

I obviously believe in Legal Shield (aka Pre-paid Legal), so I signed up to be an associate for them too.

You just have to be prepaid for anything.

No real issue for a borrower except in getting that investor or lender to act, if you talked them into it, you can have responsibilities beyond the loan.Private lenders are not registered and can not charge points as points are pre-paid interest that effect the APR in TILA matters, state laws may have usury laws and pre-paid interest goes to commercial lending, meaning lending as a business operation where the lender is registered.