Then, the next day he does the same thing or someone else following him does what he does and circumstances arise where they get nailed, you never know. 

There is also an issue that ALWAYS arises--one roommate moves out mid term, and they want to move in another.

Obviously less safe than having one loan at a fixed rate for 15 or 30 years.So long as you stay on top of such loans as you're relying on appreciation to have an exit strategy, like selling if the need arises, easy to get underwater if values are flat or go south, but short term the IO loan could be beneficial.Yes, to a borrower it may be considered forced savings, like a whole life insurance policy, LOL, but to the lender it represents a reduced risk (the reason for higher rates on IOs).

Since up front cash was my biggest hurdle, and I wanted enough cash reserves for any issues that could arise, I the 4.25% option (the payback period for this decision was about 10 years.

Contact the landlord and remind him that the tenants have a right to quiet enjoyment 24 hours a day besides the noise ordance and that any financial loss arising from loss of rents can be sought as damages in a civil action.

Thanks for that enlightening thought.What kind of legal problems can arise while having ur license though?

Here is the link:https://www.biggerpockets.com/blogs/7365/46972-classics-of-landlord-litBP also has some nice books on the topics and you can even mine the forums to answer many questions as they arise.

Thats all I have for the moment and I'm sure more questions will arise as I read your inputs regarding this.

Legal non-conforming means the property was in conformance with the zoning regulations but they changed the regulations over the years and you were legal when it was built or converted.Two issues that could arise. 

I'm west coast and I've ran some numbers and you're right people that held on since 08 have seen a rise in their value.