Also the OOS investor is doing a lot better as PM services have moved up in quality a ton compared to when i was working those markets in the 2000s.. lets also keep in Mind Ohio and MIchigan got HAMMERED in the GFC the professional note buyers of defaulted notes for a few years post GFC would not even buy that paper it was so bad.

These loans generally carry a higher interest rate than first-position mortgages because they are more risky for the lender in the event of a default since they are the second party to get paid in the event of a liquidation. 

If they have been in the location for 5 years paying rent and never defaulting, then I would not require additional PG.

Getting wiped out with your cash is definitely a bummer, I don't think defaulting on a lender is a good exit strategy either.I started with live in flips, over 22 years of living in a construction site with 3 kids.

The property has since been sold twice and no quiet title action or a quit claim deed from the defaulting tax payer have been recorded.

And so, even though you may have a lease for $2600 that’s not to say they will be able to rent it out at that price if you are forced to foreclose and order default on the loan for an equal amount.

Also, if eventually you get into that house hack, and elect to self managing a duplex, triplex or 4-plex that you own/live in, you will by default learn about property management skills and no license is required to manage the property you own.To answer your specific question, yes - you can become an employee of a property management company to learn about property management and I highly recommend it!

FHA has this rule in case of a default where they take over, evict the owner, lease all 3 or 4 units so that rent will make the payment until FHA sells it.

You may also be asked to fund an interest reserve at the time of closing which mitigates default risk for the lender.Hopefully you find helpful.

So, if anyone search why doesn't Canada have 30 year fixed, the first article says they attach all your assets as collateral /lien.Seems like getting a mortgage is a big deal, but is it true you will lose everything you own if you default (with Canadian mortgage)?