The loan's strength depends on a couple ideas:  (1) the strength of the underlying tenant and terms of the agreement (2) the financial depth of the trust to capitalize debt service in the event the tenant goes delinquent or defaults (3) the capital capacity of the trust to turn the use over to a new tenant in the event the current tenant vacates for whatever reason.  

There's a long time investor named Mike Cantu who doesn't speak publicly much anymore, but he buys houses and gives each house a job, i.e. one house to pay his electric bill, another to pay for gas, another to pay for his vacations and so on.

How's that Kailua live in/vacation property treating you?

You might look at airbnb or vacation rentalbut the simplest solution is to live there a few more years as the market rent raises and can cover your mortgageThis is why it can be difficult to invest in San Diego

It's been almost 6 months since she was notified to vacate and hasn't paid a single dime. 

But taxes are about 10-12k per year on this property and the previous homeowner was delinquent for several years)Cash for Keys: $20,000 (The homeowner agreed to vacate by a certain date to avoid a drawn out legal process, which they threatened to do)Cleanout: $750 (The place was a complete mess)Initial Cleaning: $150 (I at least needed to get the place tidied up a bit before painters would come)Kitchen Repainting / Spraying Makeover: $11,500Fresh Paint on Most Rooms (Ceiling, Walls, Trims): $12,500Hardwood Floor (Sand, Stain, Re-finish): $4,500 New Carpets in all 4 bedrooms: $4,500Lawn Debris and Hydroseed: $6,000 (and weekly lawncare until sale but that was cheap)Electrician: $1,000 (Smokes Inspection and fixed a few recessed lights + other minor)HVAC: $1,000 (Garbage Disposal Replacement, HVAC filter replacement + othersWindow Cleaning: $500Mold Remediation: $1,000 (Bathroom Ceiling)Carpentry: $5,000 (Bunch of stuff)Miscellaneous Materials: $2,000Final Cleaning: $300Staging: $4,500New Washer and Dryer: $1,000 Total: ~$600,200 (+- 2-3k)Listed Price: 669,000Sale Price: 644,500 After broker + legal Proceeds: 606,000Profit: ~6k Time Held: Bought in April, Roughly 6 Months.I didn't make much from this deal, but the experience I got was awesome.

My wife read me Rich Dad Poor Dad while I drove us on vacation one year and my plan began to take shape.These last 4 years I've been working full time days and then spending nights and weekends buying, rehabbing, and renting out houses. 

i am looking at vacation rentals in the next year or 2. for now, i just gotta save up or pay off one of my rentals.

He gave me a list of vacated houses.

Every since we took a family vacation to Myrtle Beach, South Carolina; my Dad explained to me how this worked it really amazed me.