Second, each mortgage will put more debt against you, which will have to be covered by income if you try to obtain any additional mortgage or other loan.

All she emotionally hears is, "... worst case this money we are putting away each month would cover ..."

Or are you saying that the cleaning fees cover all that?

Find out what your HOA covers, it might inlcude garabage and water.

They can not cover the CDO's, much alone the stuff on the Balance sheet.

She then sent me the MLS information with a cover email advising me that because the property had been sitting with no offers the lender has decided to rehab/upgrade the property themselves and will most likely be increasing their price.

Your risk is that you buy in a declining market and the value goes down or you don’t bring in enough rent to cover expenses.

The rental income from last year minus the management fee will more than cover the costs if it remains constant in years to come.

Unless the seller's willing to bring money to the table, the option price would have to be at least enough to pay off the loans and cover closing costs.

I rent a room out at my house to a friend right now, and another friend of mine rents out 3 rooms in his house to random tenants and still lives there with a covered mortgage payment.