It includes the opportunity cost of lost rents, the average repair costs to put the house back into great rental shape and the subsequent tenant placement fees that you will incur if you work with a property manager. 

Flipped my first place and subsequently sold it using seller financing.What made you interested in investing in this type of deal?

Yes, it happens often….the person who buys at the HOA auction loses the property to the subsequent mtg foreclosure auction, along with all of their money.

My very small business also went under, and I subsequently started a new business as a handyman/general contractor.

Also what are your goals, ie cashflow buildup, rolling equity into subsequent properties, etc?

There is also a subsequent adjustment cap, or the maximum amount the interest rate can move in one adjustment period, usually 2%. 

The subsequent short term tenant did not report issue about air not blowing from the registers as he was "cool" with the hot summer.

@Chris GibbsThanks for posting.Your post and subsequent thread was insightful and valuable. 

Finding like minded individuals can result in synergy and exponential growth and subsequently achievement. 

However, sometimes people use the loan to get the deal and then subsequently rehab and rent it out.