Hey BP fam, I have a property that desperately needs a way out,The property has been on the market for a little bit, sellers just recently bought the property so they don’t have much equity. immediately I thought, subject too until I saw they had a 7.5% interest rate.

The great thing about them is that if one unit becomes vacant, the other units can still help cover your mortgage.

I also understand you can charge them a certain amount as a penalty....1 month rent to cover the downtime for finding a new tenant. 

Check with their renter insurance (we require them to have this) to see if they will cover. 

Of course capex does come into play, but I have a lot of factors on my side including most major components of the property have been replaced already, including roof replaced 2 years ago, water heater replaced 3 years ago, full house was just repiped, septic system is 5 years old, HVAC system replaced in last 7 years, i do not cover appliances with warranty in my rentals, and the tenant I placed in the property is a single dude who works 60 hours a week and just needs a place to sleep.

Use the holding costs recouped from the mfu to cover new holding costs on the primary residence, and likely pay oop on the PITI with PMI10.

@Glenn N.Typically when lending you pay taxes in your home state only but if it defaults and you foreclose then you own property in Florida and would be subject to Florida taxes

My first six Section 8 tenants I did not get paid for first four months AFTER the tenant moved in, so I had to cover those carrying costs out of my pocket.

Cover half the mortgage/utilities/insurance/taxes etc 4.

With that being said, the subject property's PP seems a bit too high but before I go back to the broker to provide my feedback I want to ask anyone here if I'm missing something here.What do you all think?