I have helped dozens of people buy and sell functioning homes.

Investment Info:Condo buy & hold investment.

This is a great example of how some people are too inexperienced or ill-suited for managing their own rentals.

Investment Info:Single-family residence buy & hold investment.

The answer is it depends.Generally most people on here are investors and Arbitrage is just a job.

Why would you buy a property with the risk of the note being called due?

Then I talked more with the agent and found that the seller had no written lease, no deposit, no keys to the place, and that the tenant was disgruntled because they wanted to buy the place but couldn't.

Hello, I am planning to buy my first investment property within the next 6 - 8 months.

It's no wonder so many people get taken advantage of... 1.

Scenario 1: 5/1 ARMRate: 5.675%Monthly Payment: $5100Prepayment Penalty: 3/2/1Closing Cost: Broker Fees: $11,016 (1.25%)Lender Fees: ~$2,000Loan Fees: $600Plus standard title and other feesScenario 2: 30 year fixedRate: 7.375%Monthly Payment: $6086Prepayment Penalty: 5/4/3/2/1Closing Cost: Broker Fees: $11,016 (1.25%)Lender Fees: ~$2,000Loan Fees: $0Plus standard title and other fees5/1 ARM looks attractive but not sure if that's what other people opt for that for a STR property?