But I've rented to people that only made 2x the rent because they were elderly, had zero debt and good financial responsibilities, excellent Landlord references, etc.

I looked at it then he told me it was going to be foreclosed on in 3 days and I didn't want to go through the hassle of redemption and more legal fees. 

Many investor has large asset  and large DEBT.

Those that don't stay ahead of the curve will be left behind.I'd be more concerned about the various factors playing into home ownership trends if your investment vehicle is SFH - such as home ownership among millennials, aging population, consumer and student debt, etc. 

to be some upside that I am missing in my valuations:Purchase price:  495,000Units:                      16Rental Income:      8,400/moDown:                    20%Down:                    100,000Closing:                      6,400Repairs:                    16,000 (assume 1,000 per unit)TOTAL INVEST:     122,400Costs:  Debt:                  2,800.00 (6%)   Taxes:                   690.00  Insurance:            200.00  Sewer:                   800.00  Heat:                  1,200.00  Yard:                       40.00  Garbage:              300.00  Cap Exp(3%)        252.00 (Lower than I normally go)  Repairs (5%)        420.00 (300.00 per yr/unit)  Mngmnt (10%)    840.00  Vacancy(7%)        588.00  Screening              40.00 (tenant screening)TOTAL COST:     7,600.00 (rounded)Monthly CF:          800.00 (yikes...…...50.00 per unit!!)

If it ain't broke, don't fix it...but plan on fixing it in the next 5-yearsIf your ARV is only $315k, you have little equity unless you are accelerating debt paydown somehow.You will have lender fees.

Kathryn, I've been there before with the debt.

If I'm being honest, I have not looked into the legalities of charging an early termination fee in Iowa.

Now, if the seller then wants the buyer to keep the EM anyway, that's a business choice, not a legal requirement.Your example and the posters are not the same.  

Does anyone know the legality and ethics of registering at a rental address?