There should be closing costs/prepaids (attorney, lender fees, appraisal + tax/insurance paid upfront) which might altogether be in the $5K ballpark for this type of property.Gross rent is key.

You'll probably still have to pay prepaids, but that's normal, and then you wouldn't have to tie up all your funds and then get a higher interest HELOC down the road.

If you screen properly, collecting rent won't be a problem, but in my opinion even if you collect it ahead of time you shouldn't spend that money until you've earned it- what happens if they need to move out and want the prepaid rent back?

They prepaid the months rent a few days before the fire and have a decent security deposit i'm holding.

This was going to be prepaid to me for the two weeks at the closing.

Accepting prepaid rents for 25 years will give you a heck of a tax hit in the year it is received.It would be easier to pay interest and pay that amount back as rents.

Please also verify the accuracy of this information at the time you are considering these options as guidelines change.price Decorating allowancesRepair allowancesMoving costsNote—a dollar for dollar sales price reduction is also required for - Excess rent credit and gift funds not meeting FHA requirements Contributions exceeding the actual cost of prepaid expenses, discount points and other financing concessions Credit Requirements Required is 600.

Maybe buy them 4 prepaid stamped envelopes already addressed to the city water bill address (I'm assuming quarterly payments but may be more than that) so they can send the check or money order in by mail on time?

If the lender (or you, as the cost will probably be passed on to you) does not want to incur the expense of a traditional legal review you might recommend the lender enroll in a pre-paid legal service.

The question is was it prepaid in reserves or will you end up with an assessment that can derail your business model.When condos become really unpopular they can become a buy, when popular, not so much.