If I wasnt going to be doing this I would just be saving more money and staying for free with my parents.

I would provide the capital and otherwise stay passive, but hopefully grab better profits than private lending?

We have told my ex-wife that we are willing to let her stay in the house for a time but she needs to pay rent.

Also, take time to understand Arizona landlord-tenant laws to stay compliant and protect your investment.

You can then "gift" them the alcohol for staying with you.

@Amir Portal  I think you should stay open to all areas. 

Since the original mortgage stays in place, you only need to ensure the reinvestment equals or exceeds the proceeds.

Hi Sean, I wouldn't rush into anything that you are not comfortable with the numbers.  

We'll lose money for 75-90 days but the new rent is market so some will stay and not forcing people that can't afford it to move in the middle of a very cold winter I think buys a tiny bit of good will and is the decent thing to do.

A short-term rental with a stay of 7 days or less + Material participation =also non passive.