.- What does your mangement contract state about the PMC chasing tenants for past due balances after they move out?

It's a balancing act.

I think understanding the balance between active W-2 income and passive income is important.

Details2,819 SF, single family residence, 4 bedroom, 3 bath house, with a poolThe house is in a very desirable location.Market Value - $950,000Mortgage Balance - $226,137 (10 years left)Martgage Payment - $2,250/moInterest Rate – 3.5% Average Rental comps - $4,430/mo (looking at the comps I think it is above average)It certainly looks like it would cash flow, but that leaves buying a new house with a small downpayment and high interest rate.

We put 5% down using an FHA loan and currently have an outstanding balance of 450,063.We have a PMI payment of about 300.00 per month. 

Instead of going the attorney route, I ended up working with National Debt Relief, and it was actually a game-changer for me.They handled all the negotiations with my creditors and were able to reduce my total balance significantly.

Purchased a note with a $3.2 million balance for $1.775 million.  

You still want to know the balance sheet, rent roll, and expenses, but most people who talk about CAP a lot are over-using the metric and not seeing enough properties in real life.

In these states I assume that just like a standard foreclosure, all funds acquired during the sale that exceed the outstanding contract balance and any liens on the house go to the contract buyer (vendee?)

One option is to have the buyer use a loan to buy out your existing mortgage, and then you can carry a second lien on the property for the remaining balance.