You still need to meet expenses so if this isn't temporary you unfortunately will need to take action.

If you don't have to spend any money to get the cash-flow I believe it's better to just be patient and wait on the rehab.On your particular deal , hard to know without more specifics but if you assume 50% operating expenses, they are asking a 4.6% cap which seems really high for an older, partially rehabbed property.

Who are you defining expenses and who keeps track?  

We would then live in one unit, use two units to pay the debt service and operating expenses, and the fourth unit goes to the lender/investor to pay off their position.

Depends on your state landlord tenants laws-Ejection is Different and more expensive than Eviction if someone is living in your house.

More for cheaper properties, less for expensive ones.

It reduces my 'expense' in the house (my down payment is equity - essentially moving money from one savings account to another), and I find that sellers are fine with it.

On one hand, the unit is coming off being occupied by smokers, so its not a taj mahal, on the other hand, that level of interest at the price 1 month away from it being available makes me think there's room for an increase.I was thinking about messaging each person and telling them I've had an overwhelming response and will be doing 850 instead of 825.

Assume 20% down, 50% rule on expenses, 4% interest on the loan. $1,000 to close.Purchase: $100,000Down and Closing: $21,000Rent: $1,00012 months pass and for an unforeseeable reason we have to sell the property!

Does anybody from this area or any area in general that is very expensive have any advice for somebody just starting out like me.