This will WIPE OUT your cash flow:❌ HVAC repairs❌ Turnover costs❌ Roof RepairsNot to mention, you will most likely need 20% down to buy a rental. $200K is a starter home these days. → How many rentals could you buy each year?

@James Carlson totally agree with you but there is another major reason to stay on the OTAs that you forgot to mention.

The FNMA "New Book of Business" instituted circa 2010 (see this SEC document that mentions the term) https://www.sec.gov/Archives/edgar/data/310522/0000950123110... completely revamped GSE underwriting as @Jack B pointed out. 

I got ahold of the inspection manager at the HACP office to specifically ask him about the situation you mention...where they come up with a new list of items the 2nd time around...he informed me that they cannot do this and I should not expect that to happen. 

Super insightful reading into each of these senate bills, I thought SB 1211 which you mentioned in passing was particularly interesting.

Yeah a way out is definitely a tricky one, as you mentioned in your origianl post.

Wait the required time and repurchase them resetting your cost basis. 

Wait a year or 2 then do the next.

We are cash investors, If any of the markets I mentioned is your specialty we would love to connect. 

I struggle with just sitting by and waiting (especially knowing the fees rack up for my tenants the longer they go without paying!).