I am all about the customer, but when Airbnb forced hosts to give refunds indefinitely during COVID, no questions asked, we felt that to be completely unethical:Airbnb was essentially placing the homeowner in the position of insurer, with the homeowner absorbing all of the financial brunt of cancellations.

I still think the neighborhood might deter quality tenants...I could float the property indefinitely because I do make enough to cover it...but at what point does it become a not so great investment if I continue to float it...one of the beauties of real estate is cash flow right?

Generally, a lender will push off foreclosure while a short sale is in progress, but as in your case, it wasn't indefinite -- it was a predefined foreclosure data about 45 days out.

And you would also take $500K of profit out which would be tax free because you would still meet the residencey requirements of sec 121.In other words, with a little patience you can take your $500K tax free and defer indefinitely the remaining $500K of profit.  

At this point, I'm not opposed to holding it indefinitely, but obviously, that could change in the future.  

If I was going to just loan you a chunk of money to use indefinitely I would certainly want monthly interest payments based on the full amount of my money you have. 

However my intent would be to hold it as a cash flow property indefinitely.

Do you want to provide estate planning and continue the tax deferred ride indefinitely?  

What you failed to take into account was that the note interest rate was significantly below typical hard money rates and that the credit line was open either indefinitely or renewable at no or modest cost for an additional five years.My associate regularly puts that $150k to $200k in people's hands.

PMI is such a dirty word but if the PMI even for a lifetime - or at least the next 10-15 years results in lower payments than I get with a refinance in the short term, should I just suck it up and keep paying it indefinitely?