As another person stated, there's just not enough information about the scenario and the individual needs of the borrower to determine if an interest only loan is appropriate.There is no restriction on an interest only loan preventing a borrower from making principal reduction payments.

I assume you are buying for cash and there is no mortgage.Like I indicated, selling the property is a timing game to some extent and only by knowing local market conditions can you determine what may be the best time to sell a property from an appreciation standpoint.

The trick for the PM company is to know the pain tolerance of each owner and to determine that "perfect" fee to charge on every repair...A fee large enough to make the owner say "ouch!"

I have had aspirations to invest in real estate for a number of years now and have read various books and internet resources, but I have yet to jump in and make anything happen.

What pocket that ends up in would be determined by your contract with the seller.

When I explained that I would try to use a FHA loan she said that a FHA loan would not work for the property because, even though it is on title as a single family, it has 4 homes on it.Do the types of structures on a property determine if a FHA loan will work for the property?

At the initial B.O.H. inspection to bring the unit back on-line they determined how many occupants I was allowed.Good to hear you got it resolved with no issue though.

However, the buyer will lose that portion of the rent that would have gone toward a down payment, so it's important to do the math necessary to determine whether walking away is the best option.

If your plumber can play drain auger and figure out what's up then you are miles ahead.I've had similar issues in Toledo (swampland is arguable), determine how the basement has been draining first and foremost.

You need to run multiple rehab/resale scenarios to determine what makes sense for this particular house in your particular market.