She can cover the difference so you break even and you split the equity, etc. 

But if you have an owner-occupied policy while not actually living there, then you don't have the right insurance and may not be covered.

Wouldn't the Note would have to sell for nearly 100% to cover the Due On Sale?

I think your biggest issue with any "work-arounds" is going to be your legal liability and holding the proper insurance in case something goes wrong, which I'm going to assume you'd need to be properly licensed in order to be properly covered by insurance.

This would apply to your unit.Your biggest concern with setting the rent should be the near future. 1) Your insurance is guaranteed to go up, probably dramatically.  2) You may get an insurance assessment bill to cover the CA Fair Plan losses.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Our goal is to provide you with as much information and resources as possible to start investing in some of the best markets throughout the US, and learn how to scale an investment portfolio over time to achieve your financial goals.I know I covered a lot in this somewhat lengthy response, but this is about as short as I can make it to cover many of the details about how our platform works.

How much of a credit do they offer at closing to cover the servicing fee?

My CPA was unsure... do you issue 1090-NEC for the difference between 1099-K and 1099-MISC or do you double up the income (i.e. 1099-NEC for gross rents from PM, 1099-K of the net owner distribution on 1099-K, then owner reports double income and puts a line item expense for the 1099-K since 1099-MISC covers gross rents).You need a new accountant lolPM issues 1099-MISC, not NEC for rental income paid to property owners.You would still issue the rental income paid to the owners regardless of the payment method.The Property Owners should add an expense line item on Schedule C stating that income reported twice on Form 1099 to offset any duplicated amount.

It can also help cover HELOC payments if you find a property with solid equity potential.