PrepaidsHomeowner's Insurance Premium ( months)Mortgage Insurance Premium ( months)Prepaid Interest ($11.7534 per day for 20 days @4.125 %) $235Property Taxes ( months)G.

With the home being "underwater" in both respects, why would a homeowner want to make their mortgage payment if they can't get their insurer to cover the repairs.

I am looking for a suggestion on what banks to apply to for a conventional mortgage on a non-owner occupied mortgage?

Hi @Jonathan Rucker,if you are interested in getting started and you feel pretty comfortable with your goal I would say the immediate next step should be getting your team together (agent, mortgage broker, property manager, contractor) and then getting your financing in order. 

I'm assuming that this is the same thing as a mortgage.  

Meaning you will earn a minor cash flow, after expenses, but the properties are being bought because they are solid investment that are always rented in top class neighborhoods, so the investors are looking for places where they can have their mortgage paid down, and the potential of appreciation in the future, while holding an asset that will almost always be rented out.  

One thing that was appealing to me was that there was a section 8 tenant in there and the rent was high enough to cover the mortgage and HOAs and then some.

Without taxes and insurance the mortgage payment is just under $900. 

I'm not going to try to sugar coat it:Is there upside in rent as that's one of the most important things I look for.Based on my experience, the cap ex is probably high.You won't be able to get a 40 year loan so that pushes your mortgage amount up and your cash flow down.You should be able to get lower than 5% unless you are only going into a commercial loan.Terrible cash on cash returnany property I buy needs more than $5,000 in repairs. 

-Are there any other limitations on how I invest Loan B that could impact my ability to deduct the mortgage interest?