Just so you know, our credit union is VERY conservative and regards investment property as favorably as a Southern Baptist views Las Vegas.

I'd be in favor of 100% new senators and congressmen!

Instead of focusing on an area's cap rate, find areas that are seeing increased employment, increased job growth, increased immigration, favorable employer incentives, etc, and go from there.

This practice has fallen out of favor with lenders.

That said, if we can balance the budget, I'm in favor for tax breaks all around, not just the middle class...

How about buying a 2-4 unit property and living in it for a while to get the more favorable owner-occupied rate?

Unless the new job has a real likelyhood of improving her income and this really is a "short term" ditch, you aren't doing her any favors by letting her drag the situation out if the $ situation means that like-it-or-not she needs to find cheaper digs that match her current income.

Ted, that reminds me of a REO years ago whee I just felt that the bank was trying to cut a deal with a favored buyer.

If you sell it and take a loss it will hurt your ratio If you hold it and rent it for a loss, it may hurt the ratio less as you're not experiencing the complete loss right away Maybe you could owner finance it to a non-conventionally qualified buyer for more favorable terms.

If on the other hand you collect a non-refundable option consideration and at the time they go to move out you offer them an incentive (lets say $500) to clean up real good then you're doing them a favor.