Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. 

No one will ever thank their landlord for doing them a favor- at some point, they'll have to pay market rents and you'll be the evil slumlord when that day comes, no matter how nice you've been up until that point. 

Buy the oldest ugliest home in a really nice neighborhood.B. 

Nice one!

Many lessons have been learned firstly is you can’t be too nice or trusting and second is, don’t wait to figure out the refinance and cash out process and until you are almost done with rehabbing the property because currently going through a very lengthy, cash out refinance ordeal at the moment as I’m trying to get financing terms finalized as we speak.

They were nice and didn't charge me the 10% penalty though.       

Hi @Lolo Druff, @Nicholas L. referenced my previous post about buying out of state - I've had mixed results in Indianapolis metro area, Class A (nice suburb, great schools) rental has done well but Class C has been a huge headache (repair costs, stolen AC unit, attempted break in).

Looks cleaner and you can add a nice valance.

It also has a nice loft with ceiling that's high enough that you don't have to hunch over to walk around.

Given the high interest and the purchase price isn't low, the cash flow won't be as nice as my other rentals or other options in a different neighborhood.