I'm not concerned about teaching them a lesson.   

Also, the denominator is "initial investment," not "total investment" I just get somewhat wary of inflated numbers that make something look better than it is -- saying that my NWROI is this incredible percentage - but an ongoing maintenance concern/capital expense actually makes the property break - -even or even worse. 

My main concern is that I am not running the numbers as accurately as I should be, or if it’s just too much of a stretch. 

Hi Kegen, I understand your concerns about acquiring a home.

If he is current, nothing much happens as far as you are concerned.

I have a STR in Show Low and my insurance provider just notified me that they are no longer going to insure the Show Low area due to fire risks.  They got me a quote from another provider and it was about 5x my curren...

They are not concerned with the risks investors take. 

I am concerned that I could be taking too much risk by investing in a currently undesirable area versus spending more to enter the market in a more expensive area nearby that is currently thriving.3.

Are you worried about a prepayment penalty or is a balloon payment your main concern?

This addresses their primary concern.