Sale price $840k appraised for $930k%25 down - $210kRate is %6.25 adjusts after 6 months.Monthly payment plus tax and insurance = $5,081Current rents: UnitA - 0, UnitB 4950, UnitC $923, UnitD $1303 Total- $3,176 / NOI - $38,112Rehab Budget:Move out costs: $15kStructure/safety: $15kCosmetic: $40kOverage: $7kTotal: $77kCash Out Refinance: Depending on what the rates are in 12 months of course.

It provides a safety net, knowing I have an expert watching my back financially, so I recommend you all get one ASAP.

Typically I would visit twice per month, run hot and cold water in all fixtures; flush all toilets; operate on a short cycle, the dishwasher and washing machine; check all rooms for anything out of place or signs of leaks or other issues (many were condos, affected by issues in other units); if they had a car, I would take the car out for a 15 minute drive and handle registration renewals and safety checks when due; some properties we needed to coordinate pre and post cleaning when Client was going to visit.

Kim, You will have to register the house with the town as student housing, they will inspect the property to make sure it meets safety standards and there usually is a fee, i believe it is $50. as far as insurance, you want to make sure it is a commercial policy that will cover for student rentals and loss of rent, some insurance companies will not cover student rentals, if you were to get a regular policy and something were to happen then you may not be covered if they find out it was a student rental.

Free and clear on the other hand is for safety, at some point if you are like most people and your investing is successful, then your portfolio grows to a point where it throws off enough profit that you can live comfy off it even if you stop growing your portfolio, and gets large enough where you start to care more about protecting what you have already more than growing it ... that is when you start to look at free and clear.

All you need is a bad storm and that will come crashing down through your house.I think $5000 but it will be a worth while investment in terms of safety and probably save you some on insurance premiums.

He stated " We are here to assure to the tenants safety is being looked after by the landlords" Pass reputations of previous landlords who came through have left a sour taste on the cities mouth forcing them to take action and implement more strict measures.

He responded by sending me multiple text messages and an email about "various safety concerns" that I have ignored; he didn't list them. 

If we weren't providing the safety net for them, imagine what they would have to spend.

In this situation the owner has a rate north of 7% so I feel that this should be a bit of an added safety net.