People who are buying there are either doing major re-positioning - i.e total renovation of building or space and/or betting on huge appreciation.

I'm not sure it the calculation is to the day or rounded to the month, though.

You can roll her closing costs into the sale price and pay them.Selling to her sounds like your best bet if you're 1,000 miles away and netting $5 per month.

There has been some fake stuff going around silver plated crap watch out for that and make sure your broker/dealer is willing to bet you the farm what your getting is what you paid for.

Joel, this was a yield chasing gamble, and I did spread my bets.

At least I'll have learned something from the attempt, whether it's how to (or how not to) market, talk with sellers, calculate comps, compare management companies, etc.I would love to make some money in the process, but if I don't I'm willing to stick it out for the long haul.

Not saying they can't seek a full payoff, but the justification to do so will be harder, and I'd bet they won't, especially if the interest rate on the note is higher than the current rate.Later on, you can do a sub-2, effective when the mortgage is paid off.See your attorney, then call the bank back.....good luck!

How do you factor the cost of things like this into your calculations?

I'd bet if you called RE attorneys and told them you'd be interested in using them as you are looking for investment properties they might review your existing contract for zip, less than 200 bucks I'd think, ask them to look at it as to "form and content".

But I've got 8 houses with those terms and they don't count against my conventional limit of loans.Again, I'd bet only about 10 to 15% of the banks do them.