For that exercise, I take the conservative approach and underwrite CapX above the line, assuming the worst-case scenario that a buyer underwrites that way and if the price goes higher, that’s just a bonus.  

So where some might see more gain or a higher cap with other investments a conservative investor will usually see excess risk for the extra return.Mary the primary term of the lease spells out option periods and renewals and how much advance notice has to be given that the current tenant plans to not exercise the renewal option.

Years later when I ran into my own problems I latched onto that advice along with healthy eating (i.e. the selenium in sunflower and pumpkin seeds help give you a positive attitude - no joke), exercising and listening to positive empowering music (I'm a positive hip hop fanatic - check out Dead Prez's 'Refuse To Lose'.)Embrace the energy you feel is making you "nearly homeless" and turn it into steam to move forward and succeed.

IF the renter is aware of the Protecting Tenants At Foreclosure Act, they would probably exercise the right to stay in the property for 90 days or the end of their lease, whichever is longer.I was renting a house that was foreclosed on in 2009.

If you're gut is telling you to get out of it, then exercise your options to do so, within the terms of your contract.

Hi Drew,I see that this one is off the table for whatever reason, but the following may still be a good exercise to look at for future purchase considerations.Based on your numbers, if you spend the $10K to separate the heating (which is a good idea in my opinion because it incentivizes frugality; whereas a tenant who doesn't pay for heat has no reason not to leave it at 75 degrees all day),  you're in for $158K+/_ .Purchase Price: $140KMisc: $3KHeating: $10KRepairs: $5KThe NOI you propose, without paying for oil, comes to $9,144 per year (gross rents minus all operating expenses - NOT including the mortgage payment).

However, if there are only 10 years left on the lease, you may have to re-rent the place at the end of the lease, if the tenant does not exercise its option(s); in which case the physical condition becomes important.  

I have also listened to every single BP podcast while I've been driving or exercising or sitting around.

They look good to me.I find the exercise of thinking ahead to be useful but my plans rarely turn out as I thought.

ideas are an exerciser in futility.