In this situation the bank made out on the foreclosure-they have covered their unpaid mortgage and legal costs with excess; however this is not the norm these days.

Is the monthly PITI able to be covered in lease option/owner financing with a minimum of $200 bucks cash flow (more is better obviously).3.

I plan on doing my own management so I'm looking at the 40% number as I don't want to miss a decent deal.I can see $100/door for SFH & duplexes but I think that 4's are a little different as in this property, as long as 2 units are rented that will cover all monthly expenses-PITI, water and sewer.

We moved to florida from western NC and bought a house while still trying to sell our old house in NC...Well, it isnt selling.We have been paying both mortgages for several months now, and are bleeding money every month.It is too expensive, we cannot afford to continue doing this.So, we are entertaining lease options.We got an offer of 900 month rent, with 3500 down on 18month term.Our mortgage is 1600 a month as we paid 240K for the house only a couple of years ago.So this will not nearly cover our monthly expenses.

I know refinancing will cost a lot more, but I will make 450 in rent (covering expenses) over the mortgage and will have gotten 40k out of it in advance.

If you are in a negative cash flow position, find a way to earn some income to cover it, When the market does recover (which it will), you can then find equity in some of your rentals and sell them to pay off the LOC you over-borrowed from.

Mark,What the management company can (or is supposed to) do should be covered in your written agreement with them.

The good news is that I bought it low enough to rent and cover all expenses plus.

I can't imagine you can get enough rent on a condo, even ocean view, to cover a note that large.Tell the seller that you're investing $100K of your own money.

I'm not really looking to make a monthly income just to cover the mortgage, and hold onto it for a while.