Expressed as a %, B.O. shows how much physical vacancy the property can handle to break even, in a worst case scenario.So if the property went down to X% occupancy, the sponsor can still pay all of the expenses and pay the mortgage.The formula:(OpEx + Debt + Fees) / Collected IncomeMost investors would agree anything between 60% and 80% is acceptable.Are you calculating B.O. in your underwriting model?

I agree it's not the podcast of 10+ years ago, but it is as relevant as ever.

@Ryan Luthi yup, agree. 

I only had $10k to my name.My rent was $1795/mo and I agreed to a 2 year lease.

Or your lender might agree to let you reinstate the loan."

But they won't offer anything for lost rents or agree to run a mold/moisture test at their expense. 

You lease option yours back from me at terms we agree to. 

I agree with this.

Great thoughts and agree on all points! 

I can't believe I would ever agree to a 3 day cancellation period!