In addition to real estate, I spend my (limited) free time traveling, photo/videography, with my dog(Whiskey), reading/learning new things, play soccer weekly, exercising, and now apparently house/yard work with my new home. 

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.

Just to complete the exercise.  

The danger then is that after you take the property back at auction or you bought it at auction, the borrower then exercises his right redemption and takes the property back from you.

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

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).

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.

If FMV has dropped for some reason, just don't exercise your option.  

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.