Keep in mind too that even if a furnace goes out, the house isn't going to drop down to zero immediately.

I was thinking of a policy that I would give a free December or half off months rent as an incentive to never want to bail.

@Levi F.Welcome from PA.With the cold winter this year of sub zero temps, electric base board in older uninsulated houses can be very expensive for the tenants.

If the wife comes in with a 10% interest and the husband comes in with a 17% will the lender feel that this is just a way to skirt their policy, or will this be acceptable in your opinion.

Removing your lien through satisfaction just has too many ways to backfire and you can end up with a zero.

I have recently started in the note business and would say you want to verify the collateral with a BPO, get some pictures etc. verify the taxes are paid and title is cleared and the insurance is in place as well as having a lenders title policy (this is often overlooked).I would recommend using a servicer to avoid any Dodd Frank issues and to make sure your note is properly draftedFeel free to send me a PM if you need more information.

@Duncan Taylor , when you suggest purchasing liability insurance, is that in addition to the policy on the rental property itself?

Doing this will terminate any protection your partner received if they buy an owners title policy at closing.

And I have ZERO intentions of ever buying in a mostly Section 8 area or renting on Section 8 ever again.

So here is the summary of eventsWe listed the property at 104.7k and got 2 offers within the first 2 weeks on the market, remember that up here in IN we have been having a brutal winter, multiple feet of snow and below zero temps.