Just curious- how did you verify this guy's identity as a "bank representative"?

If in your shoes, I'd consult with an attorney to find out how you can accept $1800 a month with the possibility of pursuing them for the difference later.As it pertains to future tenant screening, a general rule is 3Xrent for income.

This is a small community of identical units.

I take it that a lease option on a property seems to be a unfeasible option, but would that rule out a longterm master lease on my end and then renting to these same tenants.

I hope all the new investors scouring the properties in low-income/low-class areas in search of those units meeting the 50%/2% "rules" read this thread.

Is anyone still doing these loans despite the 90-day seasoning rule?

I asked the person at Fannie Mae if the same rule applies.

For rentals, it is not just about getting the deduction but being able to deduct it because you are not subject to the passive loss rules.

Glenn I forgot to mention that being built in 1955 you most likely will have issues with lead abatement with the new EPA certified rules which will increase your rehab cost.I don't know why everyone gets worked up on a house being close to a commercial property or highway.The value of the land the house sits on is often worth way more for development than the value of the house that sits on it.You can still have someone pay you to haul off the house or gut it for parts and make some money that way.I love land next to commercial and know exactly who to market it to an dhow to sell it.Now if you are in a big subdivision with track homes on small lots that backs up to a junkie commercial business that is another story.The reality is you are probably not going to assemble all the homes for a commercial project because the front piece is the most valuable and everyone will want to much for their house making the project total cost unfeasable.

Search for 50 perecent rule in the forums to get an idea of how to do that quick and dirty with some conservativism.