Bird in hand is better than 2 in the bush, especially when the two in the bush do not have the money.we are seeing a lot of companies now try and get seller financing and then arbitrage it to renters - similar to STR arbitrage but just arbitrage it with a loan and collect the rent and if the tenant stops paying they walk away and you are stuck with the home, the foreclosure and the subsequent eviction.

And typically long term rentals don't make it easy to include property management fees into the numbers and have them still work well.I would consider looking into STR type areas where you can avoid the risk of property damages (str and pm insurance covers almost everything that they might damage) and evictions/collections.   

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.

They have rules and best practices about how we put these deals together which has collectively saved us from much of the pain being experienced right now in the multifamily space. 

My strategy as an investor has changed over the years, today I look at real estate more like a collection of properties and less through the cash flow lens.

@Rickie LattimoreGive up 95% of the equity - oversee the properties and collect a management fee.

I actually collected the differential of 7% interest on the $50,000 note (this was an interest only note - not amortized) for 18 years!.

In a few of the states there is either a form. you must sign or an application that your escrow closer must file in order to exempt from any state taxes or withholdings that might normally be collected at sale . 

If you choose not to show up, he would almost certainly be awarded a judgement.Of course, you could choose not to pay the judgement, but then he can send it to a collections agency and your credit score will be trashed.I don't see a scenario here where you get through this cleanly.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.