The area appreciates about 1% a year due to it is next to a major naval base.

It's a major win-win in my opinion.Lastly, if you had 3 subject to's called for no reason whatsoever then I wonder what the rest of the story is and the details surrounding that because you are the first document-able person I've ever heard of who has had it happen.  

I would agree for the vast majority of clients, paying points does not make sense. 

Is the 10% only on major repairs or all repairs, if on all repairs that is a garbage fee.

The third component that makes a good deal FOR ME is the potential for appreciation, both forced and organic.

The concern is for people living close to the edge with little to no reserves where if they have a vacancy and major repair the dominoes start to fall.

Here are the two major questions that I have been eagerly waiting to find answers to and need some expert opinion from all you experts out there:Cash out on equity on the rental property by selling it while market is high.

I still own the first property I bought in 2007 and had to make many major repairs over the years.

Generally, an inspector doesn't show up unannounced, with an appointment, for an inapplicable trade or component of a house. 

The two common choices for doing so are the self-directed IRA and the Solo 401k.The Solo 401k requires self-employment activity, but will allow you to take participant loans while the IRA does not.A few other Solo 401k benefits:Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)With either structure, it's generally recommended that you do not commingle retirement and non-retirement assets.