You also have the option if you are operating this as a hobby, as opposed to a business, you can do what ever you choose with the rent to retain the tenant at all cost.

Still, thinking about it capital expenses are sometimes relative where they would try to repair something that you would rather replace.There is an article that I just read on bp.com about due diligence on buying and retaining rent property, which included getting their insurance to see if the property is in a flood plain.

As Bill stated the second can pay you off and retain their interest.

Should I retain an agent at this point?

I'm not a lawyer, but I don't see why you cannot retain the $675.00.  

More to the point, you'd be making it VERY hard for yourself to still retain positive cash flow with that much leverage, especially with the extra points they'd charge.And not to forget the additional risk that YOU are taking if values go south for any reason!

Hopefully they don't go that route, but I would speak to an attorney in case and put one on retainer for the future.

:p Yes, you are splitting a property up by time, but I think the difference is that it's a very small group (2 people) who have a contract re: how long to hold the home, so the investment is as likely to retain value as any home in the area is, whereas of course timeshares are infamous for being difficult or impossible to re-sell.

If you can really achieve that totally passively  in real estate and retain your tax benefits in a 1031 exchange it's worth pursuing.

I'll definitely be reaching out to most of them to add to my vendor list.Another flooring vendor that was recommended to me by a local investor was Parker's Wholesale Flooring in case you all need another contact for that area.On a personal note, I have a stone retaining wall at my own house that needs mortar repair.