The two are almost entirely different markets in terms of price points, returns, tenant quality, and overall investing strategy.

It is fine as long as you disclose in the listings that there will be other guests on the property.  

Make a long list of all the lessons you have learned.

Sub2 is a risky strategy for a long term buy and hold as the longer the deal structure stays in place, the higher the chance that issues will arise (like issues with the loan servicer, insurance, seller filing for bankruptcy, seller dying, seller realizing their DTI ratio and ability to buy their next property is negatively effected and becoming upset about it like in your case, due on sale clause being called, etc.).

What really matters is how long you think you will have this loan. 

So as long as I paid no issues.. and most of those I sold on wraps. when i started buying homes via sub to I did over 100 of them..

Very long winded, but again not exactly sure how to ask this question.

I am excited to get started investing in real estate in out of state Long Term Rentals.Outside of real estate, I enjoy spending time with my kids, as well as mountain biking and other outdoor adventure activities.Excited to learn and connect with you all!

Dave,Sorry I took so long to respond. 

Prepayment penalties- usually 1-5 year terms.