I don't know the numbers, but I would suggest skipping out. 

Tenants prefer them (no deposits), and most of the small water and sewer utilities around here try to make the landlord responsible for the bill if the tenant skips town... yet they won't give you notices when the tenant gets behind. 

Skip trace the owner and find out what they are planning on doing with it.If they want to sell. 

That $5k down payment disappears if they skip a payment and you have to evict, and I'm guessing painting a $500k house in Memphis would run you that- what happens if you have to replace the carpet or some cabinets?  

Many times Title Companies can assist you in locating the property owners for you to then send out your letters.You can also use any of the Skip Tracer sites out there to try to locate the Owner on Deed.Lastly, you may want to simply talk to the neighbors and/or try to locate a relative in the area.

@David RuppYes, I skip trace, looking for relatives. 

If a tenant skips town, and doesn't want to pay, the best scenario is no damage.

Say the ARMs resets in October, home owners try and make a payment or two and realize it's a lost cause, they skip a few payments, lenders begin foreclosure, would it take about 6-8 months, maybe longer, for home owners affected by October resets to actually lose their homes?

I would also highly recommend having a reserve fund that will adequately cover your expenses during vacant times and that will also cover any repairs that might come up.You will have tenants that don't pay and you will have tenants that will skip out on you.

so, since i was so hung up on it, i just skipped it and bought a house and rehabbed it.