Right now, the city is getting in place its pool of developers that will help recycle the real estate.Currently, Bank of America has 300 REOs within the city.

He wants me to settle.There may not be a disclosure issue if the tenant converted to a M2M lease.The sitaution has me wonder to what extent lawyers are are milking the situation in this area, considering how the courts often rule, the very common issues with the types of tenants etc.Still trying to wrap my head around this situation-what a learning experience!

They want to recycle money quickly to increase their returns, they aren't looking to collect installment payments long term.Rental properties generally get either conventional financing (15 - 30 years fixed) or after that's exhausted or otherwise unavailable, will go with private funding (generally a bit more expensive, shorter amortizations, and variable rates).

How about 2% milk...since it spoils many a good deal

One can't make reasonable cash flow from that, so I think speculation is starting again .. but maybe people who pay these kind of prices for the properties that I paid for 230k, know something I don't.I am exploring remote properties acquisition management in places were one can achieve buy and hold strategy without relying on appreciation.I would live to hear from people who successfully executed such feat.How they located properties in far long places, how does one selects PM who will manage your properties without milking you (I had such experience with the property in San Bernardino, years ago)

There are way too many scam or ripoff full service companies who service foreign investors, buying junk properties in war zones and milking it for all they can get while nothing they do is quite illegal.

Seems like you are leaning towards keeping the tenants, I would be sure to explain this to the tenants, normally you increase rent each year to keep up with rising costs (use an example like cost of milk or eggs in the grocery store or something) but since they are such good tenants you are going to skip this year. 

I have no problems with a RE cycle since it is going to happen no matter what, but I have huge problems spending tens of billions bailing out the banks who are going to be lending out this money.

And when the tenants feel like they're leaving in peace, they're less likely to damage the unit or try to milk it.

Although this deal certainly wasn't a home run since I had to leave almost 50k in the deal, I now have the confidence, systems, and ability to pursue deals which will allow me to recycle capital in the future.How did you find this deal and how did you negotiate it?