It's easier for an investor to stay committed to the plan and avoid change orders than it is a regular homeowner.

I’d suggest you dig into the numbers, compare it to what a regular sale would give you, and talk to someone who specializes in this type of deal.

I make my regular interest-only payments for the first 7 or 8 months, and my interest-only period lasts 5 years.

The participation must be regular, continuous, and substantial as defined by the IRS.

- If the Association Fees are regularly increasing or the Association is poorly funded - SELL.3) How much of your TIME do you want to invest in all this?

Not to mention how these properties don't appreciate the same as a regular home. what are your thoughts? 

By all means give them a note on how to use all of the appliances (eg clean out the lint trap on the drier after each load, do not use dish soap in a dishwasher, change the furnace filter regularly, etc).

With the exception of some small markets in the Southeast, places like Cleveland are the only major metro areas where a regular investor can find cash-flowing assets with a mix of appreciation. 

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

I used to live in Tokyo for 6 years and would like to find a reason to go back more regularly but let me know if you want to connect!