Typically the "owner" of the "firm," on paper, is simply a Loan Officer or Branch Manager, and all "his" employees are actually Loan Officer Assistants with pay-stubs that say "XYZ Lending" on them.

If you evict, you'll bear the costs of the eviction, plus the turnover/vacancy and on average have the same situation as it sounds like you have a typical tenant in terms of payment.

Also FED has little to no control over 10yr, which is just the projected 10 year real GDP (2.5-2.75% today) plus the projected 10 yr inflation rate (2-2.5%) currently, and of course Cap Rates are typically 150-175 bips above that with a 9-12 month lag.Many smart economists like Dr Steve Hanke and John Greenwood at Johns Hopkins take the opposite position that 10 yr is going down big time soon, due to M2 money supply contraction of 3.5% over last 2 years, M2 has only contracted 4 times since 1913, and every time there has been a proportional recession. 

We are currently running close to 4% inflation, and the FED's target rate is typically around 2%. 

The human factor is essential here.... 

Hi @Drew SygitSounds like a tough situation for both you and your investor.Over the last few years, HomeRoom has housed thousands of roommates in our homes and used that time/experience to fine-tune our approach when dealing with cities and neighbors.City interactions are quite rare and we are typically able to work through them.

I never recommend out-of-state investors buy anything for less than about $55-75k all-in or, generally, it will be in an area that has a mediocre tenant pool with high turnover and bad turns when they leave; the price to rent ration doesn't matter when these items eat up your profit year after year.For multis, it's a little different, but I typically ask them to focus on units that rent for about $500-550 minimum to have an easy time managing them and finding quality tenants. 

We have bought hundreds of loans the past several years, you cannot buy them from a MBS, they have to be removed from the security (typically due to non performing), or they did not qualify to be securitized (scratch and dent). 

Understanding these rules is essential for investors seeking to capitalize on the short-term rental loophole while maintaining compliance with tax regulations.

Schedule E typically caters to rental income and certain types of passive income, while Schedule C is tailored for reporting profits and losses from a business or self-employment.