Low purchase price and owner-occupied loan to keep down payment and carrying costs low to fund the construction costs.

By carefully vetting potential tenants, you can mitigate the risk of late payments, property damage, and other issues that can arise from irresponsible renters.

Then the judgment would need to attach to the property and then you can foreclose.Issues that could come up are I assume there is no third party servicer to claim the payments were or were not made- so there is a he said she said - if they also occupy the property and statements were not sent you cannot charge interest typically on the loan.You will need an attorney involved to see what if it is still collectible.

As others have mentioned, you will likely see cash-flow opportunities on the North and West side of Jacksonville.I personally think there is room for appreciation in the Jacksonville market as population has increased double-digit for the past 4-5 decades.

Here are some details: Top bottom duplex Purchase price 440kTurnkeyDownpayment - 55k Both units vacant2/1 upstairs - $1500 market rent (long term)3/2 downstairs - $2500 market rent (long term)Newly renovated Central ACSeparate electric meter 1 water meterInterest only payment for 5 years - $2567/monthTax - $500/month (appox)Insurance - $150/month (approx) Cash flow - $391 (after taking into account vacancy, property management, maintenance and capex reserve)ROI - 8.5%No prepayment penalty If used as Airbnb, ROI can be higher

As mentioned above you can use your down payment as leverage buying multiple properties with 25% down and having millions of $$ properties owned is better than one property paid off. 

Not just save up and do research when I have a down payment. 

After a guest stole out TV's and filed a claim on their credit card payment - and VRBO did NOTHING to assist us, we checked out what Airbnb would have done. 

What's your mortgage payment?

I have verified that State Farm Insurance will be providing all payments via ALE Solutions.