If you decide to buy and hold then just make sure you have clear paperwork that documents the process for exiting the deal.

An FHA is for your primary residence only, and you'd have to sign documents stating you intend to occupy it as such, for at least a year.

@Nick Zias, it's fraud because you have to sign documentation stating the money in your bank account that you will use for a down payment is yours.

Bremner.Have you had problems getting the student housing insured?

In most cases, you are correct in that you need to submit documents to the tenant within 21 days of them vacating the property, but there is a clause in sub-section (g) that states you must provide an itemized breakdown of all charges against a tenant's security deposit:"(g) (1) No later than 21 calendar days after the tenant has vacated the premises ... or not earlier than 60 calendar days prior to the expiration of a fixed-term lease..."

I'm not a lawyer so this is not professional advice, only advice from my education.I don't think the 1003 application is overkill, the more documentation, the better in the event things go sour.In terms of...Terms, from what I've heard from Larry Harbolt who I attended an in-depth seminar on regarding owner financing...The terms are completely up to you.

I asked a title company this same question and they said I could somehow clear the cloud on the title and then buy an insurance for it.

Insurance is $50/mo and the taxes are $60/mo.  

Do these number Monthly Gross Rents $ 4200Monthly Expenses  Vacancy       $ 336 (8%);  (including here since 50% rule includes vacancy as part of expense)  Prop Mgmt   $420 (10% of gross rents)  Insurance     $208 ($2500 yearly; quoted by insurance agent)  Prop Taxes   $680 (2.9%/year of assessed value; actuals; eats up 15% of gross rents)  HOA fees      $330   Maint Reserves:   $420 (10% of gross rents)  Maint/Repairs       $84 (5% of gross rents)Total Expenses : $2478 (59% of gross rents)  NOI:   $1722  Mortgage: $1215 (25% down @ 5% interest)Approx Cash Flow: $507/month (about $125/unit)Cash-on-Cash: 7.2% (Assumes 25% down + 3% closing costs as initial cash requirement)Thanks,Jacob  

I'm not an expert but do have firsthand knowledge about asset protection, insurance agents, contractors, etc.