I came across this old post about Capella Mortgage and thought the following would be helpful for any members considering investing with Capella. 

They said they woild need a follow up in two weeks.

Normally it would follow with an explanation of why they can't confirm any information.

If so, you will need to honor the terms of the existing lease.If there is not a valid lease in place, and they are there month to month, you can simply provide them with a notice of non-renewal (make sure to follow the proper length of lead time required by your state). 

In a perfect world, my investment strategies are as follows:1) Using FHA 3.5% or conventional 5%, house-hack MFHs in Los Angeles and get as close to breakeven as possible from rental income with a maximum monthly "loss" of $500.

I have found the following to be true from banks lending money for investment properties....1) Loan term will be 20-25 years (not the 30 years most personal residences are able to receive)2) Interest rate is 1% ish higher than personal property loans3) Down payment requirements are between 25%-30%You can probably see where I'm going with this. 

Now, if you want strictly passive returns, this is probably the best vehicle provided you buy quality certs that you are reasonably certain will be redeemed or sell at the tax deed auction. 

Portfolio lenders typically follow the same (75%-80%) rule and consider the additional income from your properties and perhaps relax on the debt to income ratio and as long as the deal makes sense and generates positive cash flow.  

Now this may depend on how strict the HOA is, but if the bylaws that you agreed to say no renting, and you rent it, you can potentially piss off the people who have the power to add fines and liens to your property and put up a damn good legal fight.

With non-recourse loans underlying asset is the only security for the loan, for this reason lenders have more strict rules to protect their interest.