@Lawrence Henkel III I have never done a BRRR but I like math. rehab period $0 income.

In my experience, some of the most complicated issues can arrive during the due diligence period and while you are in escrow.

If you have them pay it directly, make sure you get them to send statements periodically to ensure the bills are being paid.

Unlike some HELOCs which have interest-only periods, my HELOC requires a minimum monthly payment of 1.5% of the loan.

My fear is I go over the 2 month period and I start losing money.Potential solutions: 1.

Offer to do it over a period of time to "help him transition".

In the LOI you can spell out everything; inspection, due diligence period, seller financing terms etc.

It now caps what the landlord can raise the rent to 7% plus the CPI in a 12 month period.   

Due diligence period ends next week and we are set to close on the 7th.  

According to the Home Owners Protection Act of 1998 Summary, "Borrower-Requested Cancellation Based on the Mortgage’s current UPB and the current value, the LTV ratio must be: *75% or less, with at least 2 years, but less than 5 years, having elapsed since the Origination Date of the Mortgage; OR *80% or less, with either:     -At least 5 years having elapsed since the Origination Date of the Mortgage; OR     -No required minimum period having elapsed since the Origination Date of the Mortgage, if substantial improvements to the Mortgaged Premises have increased the market value of the Mortgaged Premises since the Origination Date of the Mortgage"