One thing to keep in mind is that financial institutions and servicers that foreclose on properties have a tendency to ignore the amount of work that it will take to bring the property up to the neighborhood standards.

He said he will pay Security at end of month and pay regular rent which is due on first, on the 11th.

So on Jan 15, I spoke to the tenant about who to include in the lease when the tenant said that she was leaving at end of January in 15/16 days.So my question is what are my rights?  

I have a tendency to be OCD with the details.

@Arlen Chou thanks, when you do cash out refinance, whatever amount you take out,do you have to pay taxes at end of the year on that amount ?

Tenants that live like this have a tendency to allow maintenance to go unreported, which could cause severe structural damage that costs much more than the benefit of having stable tenancy.But in this particular case...he does report maintenance and there are no problems with the apartment despite 30 years of living like this. 

Use it, and you can get an infinite number of uses out of it.Your seed money (cash) is your most valuable asset...don't spend it, use it.Example:  $100k in cashOption #1:  Spend it all on 1 propertyCost = $100k# of properties owned; Asset(s) value = 1; $100kCash Flow/property; total = $10k/year;$10k/year# Years to break even (profit starts) = 10Asset value (5% appreciation/yr) after 1 year = $105k# of years to buy next property (assuming same way) = 10Cash flow at end of 10 years = $10/yrAsset value at end of 10 years = $265kOption #2: Spend 20% on 1 property, leverage the restCost = $20k/property# of properties owned; Asset(s) value = 5; $500kCash Flow/property; total = $5k/year; $25k/year# Years to break even (profit starts) = 4Asset value (5% appreciation/yr) after 1 year = $525k# of years to buy next property (assuming same way) = 1Cashflow at end of 10 years = $215k/yr (PM me and I'l show you the math)Asset value at end of 10 years = $4.975M

If the house isn’t booked 3 weeks out, forget about it - might as well fly into town & use it yourself that week.Also people tend to use large houses as party houses so there’s a tendency to trash your place.All that said, I love owning large houses & I make good money on them most of the time, but be sure you know what you’re doing before jumping in.

I'd probably not have a tendency to put a family member's money at risk.

They managed 70 units for me and agreed to 7.5%.. 10% is like for like 1-5 units.. you need to allow them to manage more units to lower the cost..It's harder for them to scam you and run away if they are using a management platform like buildium and appfolio.. unless they do some manual overrides but at end of day it come down to credibility.. is it worth it for them to scam you and lose license and business?