Given the deferred maintenance of the rest of the house I wouldn't be surprised if it's a "put it on craigslist" type situation.Joe Butcher, Dallas, TX

Surprise, surprise.

I wouldn't be surprised that they are good applications and possibly long term tenants.Your first impression prior to receiving an application usually will determine what type of tenant you can expect.

Price an umbrella policy and I think you'll be surprised at how cheap they are.

Myself, I am looking to retire soon so I approach it more conservatively than I would have 20 years ago.Whatever direction you take, make sure you leave lots of cash reserve to cover that huge unexpected expense that will hit at some point.

If you know what you are doing and follow some pretty well proven strategies (you can learn them all here and in a few good books) that you understand before you jump in, you can always scrape a knee or get an unexpected nick or cut, but you won't break a leg and get seriously hurt.

This is NOT an accounting nightmare, as some would have you think, but your accountant should be on board with you so that he isn't surprised when you walk in the door at the end of the year with this.

I started to post at the first but had to put my computer down, there are several issues, the first is the OP's strategy, read it carefully and see if you see any issues.I'm also surprised reading between the lines of other posts.May be we need a thread on predatory dealing, practices and why RE isn't like selling a used car or a box of bubble gum. :)

There aren't any more, or less, surprises with an FHA loan than any sort of conventional one.

Next time they call, they've had some "unexpected expenses" come up, and now they have 4 to 4 1/2 months rent available, and still don't see the need to fill-out a credit/work history application.