I personally honor their lease rate through the end of their current lease - and usually this is all the tenant is concerned about.  

Some details on the deal below:Mortgage rate on the property: 3%Monthly mortgage payment: $1200Amount owed on mortgage: $230KCurrent property value: $370KEquity: $140KDue to the low mortgage payment and high rent potential in this neighborhood I would like to assume this loan and rent this property out as a long term rental. 

She didn't think the case holds much water but it could be very time consuming resulting in high fees.

Purchase price = x Cash down = 0Owner Financed amount = x  interest rate = xMonthly interest only payments to seller = x 20 yr. term = x so on and so forth with gross PP?

Keep it trim, let her out and find a new tenant capable of paying.Truth is money is tight for a lot of folks and we'll see rental flat line or decrease cause not many can pay these rates anymore.

This mostly comes from 2 things 1) cost to rent ratio is all time worse 2) the interest rates are near highest since turn of the century.  

Is maintenance on a “solid” house cheaper than expensive HOA fees?

Cash out refinance is the way to go since rates are lower than Helocs and its over a 30 year versus a shorter LOC.  

You will have to build back up your income to be lendable to get the best owner occupied rates from banks.

With current interest rates and prices most homes on the market are not going to cash flow right out of the gate.