The 70% rule is a common guideline the rule of thumb is to never pay more than 70% of the after-repair value minus repair costs

@Tom Server I am newbie to Section 8 too, but they are paying me a little higher than market rent because my house is new and has all new appliances.

Have the Seller pay it.

Set aside a big pile of cash or rely on a line of credit you won't be using.The oversimplified insurance concept is to pay a small premium to cover a large loss.

@Basit SiddiqiAgree for example would you rather have 13% net but deal levered 75% or a deal no levered at 8% net.On a 100k investment I would take the 8% deal every day as I will gladly pay an extra $5,000 to reduce my risk substantially since in option 1 the deal can go to zero in option 2 realistically it would be really poor management if it lost more than 10-15% of your capital.

And he said I would pay the mortgage directly.

Start depositing all of the rent into that account while paying expenses for that property out of that account.

At the end of the year, he would file a tax return and get the withholding back from the IRS after paying capital gains on the 15% withheld amount.

This tenant seemed really nice, let me in to inspect the unit, but already started talking about how they were trying to find funding to help pay the rent for July. 

We could probably charge a little bit more, but most snowbirds are senior citizens on a budget so I feel we're close to the top of what they will pay.