Expense-wise my mortgage payment runs $55K/yr and PITI runs about $15K/yr for an obligation of $70K.Which of these scenarios is correct as it pertains to the DTIR on this property?

So I think 8% is high for vacancy but want to run the numbers very conservatively.  2.  

@Kim Meredith Hampton that was my gut feeling, I just didn't want to run in to any legal issues if his claim did happen to be true but couldn't produce paperwork and I continued with the lease I have.  

@John Kilduff I actually know a wholesaler in DE that runs an apprentice program where she trains new wholesale investors to know good or bad deals, find leads and close on the good deals with them and splits the profit with them but I only know one buyer in NJ who buys in Burlington county but made I'm with it.

I'm assuming they use alot of water and don't mind letting it run since they don't get a bill for it.

It's actually a disservice to the seller and poor negotiating skills of the listing company.These larger companies often have very large overhead costs and must keep transacting to survive.I run a different model at my firm.

On most other deals, we'll use fannie mae loans, which are currently running around 4.75 I think, but haven't checked lately.  

When your running a multi million dollar rental portfolio, you want to create all the tools you can to give you leverage.

You aren't being mean, you're running a business.

It's a bit more expensive up front but saves a ton of money in the long run.