If they are floating, the may go up each year which will impact your cash flow.Your best bet is to secure a loan with a term length that is longer than your projected hold period.

Trouble is, I’d bet that the seller has already tried and some or all don’t want to sell.  

Once you are out of the bad deal, you can take the cash you do get out of it, and invest in a property that will make money...meaning, you will recover the temporary losses you have now, and start making a profit again.Staying with a bad hand, and continuously "betting on it", will get you out of the game fast. 

Argus would be your best bet for software but can be expensive if you don't already have access. 

@Omar Khan, great lifestyle but betting harder to do RE business. 

Doing monte carlo for stocks, but just listing my real estate in my assets column and mortgages in my liabilities column without doing monte carlo modeling of my real estate holdings is not enough.

I would look into selling a partial at a premium if you have your heart stuck on selling at a premium.Selling a 5-year partial at a premium is a much safer bet in case the loan refinances.

@Ryan BrooksNot sure why the seller would do that as the lien stays with him not the property once you take ownershipAny $ he makes off the deal goes to IRS first do his best bet would be to sell it for $235k and get IRS and mortgage paid off then he never has to worry about itYou cannot assume someone’s IRS liens

Long Term Option would be the best bet since the repairs aren't really for a major value add Loan Amount 187k Rate 6.7% (Depending on credit score) Origination 1.5 to 3 points30 Years Amortized 3 to 5 year fixed

As @Kevin Sobilo mentioned, house-hacking is your best bet.