@Bob Bowling I agree completely Bob, but SF is unaffordable for most people and it's extremely difficult to predict what markets will have their rent double over the next 5 years.

When the tenants move in, you hope the screening predicts the future, but you really don't know if they will pay on time and take good care of the property and stay for a long time.

And Nashville is booming, but I think prices are reaching their peak and finding deals in the right neighborhoods is difficult, but still a million people are being predicted to move to the city in 10 years.

I'm not an economist so I won't try to predict when the market is going to correct, but obviously anyone that's watching can see that it's going to happen. 

Mortgage lenders in a recent Forbes article predict a range from 4.5 percent to 5 percent rate by year end.

There are multiple factors when predicting where house price movements will trend, but a stronger economy (which is the driving force to end easy money policies anyway) may have a stronger impact on the housing market than the interest rate factor.With more money in the pockets of an average household, there might be enough demand in the housing market to offset the rising cost of leverage.

I predict one months lost rent is going to be the least you are going to deal with at this point.

No legal advice - just my personal opinion: Based on the info you provided, I predict that you will have a VERY hard time convincing a judge to rule in your favor.  

There is no way to predict if, when or what will happen.  

The bank required us to put $17,500 into a bank account from which we could draw for repairs and we put down $2,500 for the owner carried loan.We learned a lot from our first flip and did most of the work ourselves except for carpet and paint.This really helped us to understand on what parts we will tackle on the next flip and what not.Without BiggerPockets I am sure I would have missed a lot in my calculations but everything came in exactly as my predictions were except for the increased market value of the home.We don't have many great before photos, but here are a few.