If David raised the rental rate to $950, his residents would probably rent somewhere else- they are making a dumb financial move in paying late, but that shouldn't prevent the OP from profiting handsomely as he is doing.

I'm with the OP in that I think there is some kind of a correction coming.  

If the OP wants to plan for no vacancy, no repairs and "sweat" lawn care and management... then he's going to love this deal.Good luck and best wishes on it.

I hesitated to jump in as the OP seemed to have a problem with the business side than the information he provides. 

Disclaimer this loan probably wouldn't be given for only 1 property and would have to be part of a package but lets assume that OP as a package and he is debating between the two options but lets just look at 1 property to make the numbers simple. 

while I am a Realtor and not an authority on lending, the knowledge I have regarding reverse mortgages indicates a win-win for all involved, but it is up to the individual to make an appointment with a qualified reverse mortgage specialist to learn about it for themselves- find someone who has earned the title of 'certified reverse mortgage professional' (CRMP), not just any lender.Also, I'm not sure the OP qualifies anyway as you need to be age 62 or older.

Her job loss and leaving early caused you to do double work, and no one should work for free involuntarily.I don't know why posters on this thread see this as "double work" - it's the same amount of work that the OP would have to do, but just moved earlier by six months.

I'm in a similar situation as the OP, Steve K.

Joel OwensI would look at the OP's experience more positively.

OP wanted flip scenarios but some are showing buy and holds.