The current rate on both is +/- 5%, but with the anticipated inflation, I can see these resetting at a much higher rate without an equivalent increase in rent income.Has anyone else considered this problem and what can you do to protect yourself?

How can this "relationship" persist given that it is at odds with the bank's own lending approach?

And if they move in on an odd date, we charge a full month, from say the 10th to the 9th.

This can very well be a consideration for any investor in buying an oddly structured note, with variable payments.From a risk stand point, the return of principal is a good thing, getting my cash back is most important.

Basically I'm looking at new electric service with new boxes, switches, baseboards and smoke detectors (quoted $1500, counting on $2000), fix some of the walls and windows, open up some odd wall choices (non-load bearing), and so some cosmetic work.

Inflation.

If they want to be indemnifed against any loss of market avlue for tweny years with an inflation clause (lol), say the deal is off and find another buyer.

They may ask you to do small odd jobs without any kind of lessons or compensation.

I would think this is pretty common, but oddly, I'm having a hard time finding anything searching the Internet.

It seems like the only people buying are older investors who are content to eek out a tiny profit since they can't put their money in CDs or savings accounts (because they aren't even beating inflation at current rates.)And, the taxes on the properties don't seem to be reflecting the new low values of the houses; Homes that sold for 400-500k in 2004 and are now listed for 200k are still showing roughly the same taxes that they were charged back at the peak of the market... go figure.