Never had a problem...I didn't use a traditional lease, but just asked them to email me their contact info and request for dates, then I would respond with a price and fianlize the transaction.

I can totally see how a rookie, in the name of the podcast, could hear this and determine that defaulting is clearing the slate, offering an opportunity to save and start over in 2 years. 

Looks like mortgage is over $4K/month on a 30 year mortgage.Purchase Price $950,000Down Payment $70,015 7.37%Mortgage Insurance 35000Closing Costs $18,000.00 4% $18,000.00Interest Rate 4.25%Term in years 25Financed Amount $914,985Payment $4,956.82Renovations/Repairs $20,000Out of Pocket Costs $108,015Monthly Assumed % Manual InputRent $6,000Property Mgmt $480 8.00%Vacancy $300 5.00%Maintenance/Repairs $180 3.00%CapEx $45 0.00% 45Insurance 50 0.00% 50Property Taxes 419.7 0.05% 419.7Rental income tax 0.0 25% 0.0Expenses Subtotal $1,475"Annual % Increase(rent + expenses)" 2.5%1% ruleGross monthly rent should be >= 1% to total purchase price0.63%GRM (Gross-Rent-Multiplier): the lower, the better13.2Cap Rate (Net operating income (annual) / total purchase price): the higher, the better5.72%Net Income After Financing (/mo.) = Net operating income - financing costs-$432years Monthly CashFlow1 -$4322 -$3183 -$2024 -$845 $386 $1637 $2918 $4229 $55710 $69511 $83612 $98113 $1,12914 $1,28115 $1,43716 $1,59717 $1,76118 $1,92919 $2,10120 $2,278 

Here are the details of the property:- Leased until July 2025: $1400 and $1450 per unit per month- Built: 1930's- Zoned O-2Information in the Rental Report:- Vacancy rate: 5%- Purchase Price: $310,000- Repairs and maintenance: 7%- CapEx: 5%- Property tax: $3,600 per year- Insurance: $2,400 per year- Roof: Broker mentioned it doesn't need immediate attention but will likely need replacement soon (~$15,000).- Cash flow: The report shows a $177 monthly cash flow.- Condition: The house is completely renovated.

The real kick in the pants is that EVEN IF the doomsday scenario occurred, since the price point is so low the property would still cash flow as a SFR - but the underwriters don't want to hear that. 

Fair pricing, with timely & quality work! 

It depends on the guidelines and the deal, but sometimes the pricing on LTRs and STRs is the same. 

They brought in cases of Evan Williams 1783 and it was fantastic (and half the price of Maker's). 

Purchase price: $1,450,000 Cash invested: $2,000,000 Sale price: $2,300,000 300+ lot RV park that is located outside of the city limits of Addis at the intersection of Hwy.1148 and Charles Ory Road (about two miles from Dow Chemical on the West Baton Rouge side of the West Baton Rouge/Iberville Parish line).

Indianapolis is a great market to get started in with affordable pricing.