(15% down, 2.875% 30 yr fixed, MIP $232/mo, $17k funds to close, $2300/mo payments)2: ARM: I'm nervous to have a rate that may be significantly higher in 5 years that will cut into my bottom line and I'd like to take advantage of the low rates now.

Your PM company allowed these tenants to get behind and now owe 'a significant amount of money'; unless you explicitly told them to drag their feet you need to get a new PM and let them do their job.

The gain from such a sale would be treated the same as the gain from an arms-length sale of the real estate to a third party.

Favela are a risk due, too, the existence of 3 figures (all heavily armed and - imagine that - not trustful): The Police, The Militia and the Drug Cartels (this last fighting each other now and then).

To build on what Patricia said, be explicit about the carrot and stick.

When I was talking to lenders last week, rates were still very good, but instead of a 5yr term, 20yr am, 70% LTV, they are 5/1 ARMs (probably better since I don't have to pay a new loan fee like before, just to extend another 5 yrs), 20 yr am, and now 65% LTV.

At my bank, 30-year is up less than 1/8 point since March 3 when the Fed did their rate cut. 5/1 ARM is actually down 25 bps.

A local CU was offering a 10-YR ARM mortgage with 10% down that really made the numbers work.

Since the LLCs are disregarded, they dont even explicitly appear on tax returns on Sch E.

I  ran their subdivision development arm..