Assuming they never paid on Principal you could collect $261.24 a month when you finance the property your self for a total $37, 618.11 in collected payments.What is my Motivation to Sell?

If they have a weakness in residence/rental history, income/employment history, financial/credit history, or legal/criminal history, but generally meet all of your significant requirements, then collect more security deposit to cover your risk.You can download an example of our Rental Criteria, as well as Tenant Screening Questions, from the BP File Place if you're interested in seeing some examples.

Depending on your net worth, this can become disastrous due to the fact that: (1) the property is totally underwater; and (2) the bank knows that you still have other assets that it can collect from you.

Enjoy all of the resources BP has to offer and best of luck on your investing journey!

(Bad credit is phone bills to collection and visa often late).The exit strategy is repay the property tax and put on mortgage on an 15 year amort so it will have at roughly 75% LTV in 2 years and refinance with a MIC.My concerns are as followings:If they do not pay I will either lose roughly $20,000 assuming an exit price of $130k or own a property (it's a duplex) that would have roughly IRR of 8% on a 3 year hold in a town that I do want want to own a rental in.The borrowers have enough money to pay as things are now.

They can simply refuse to take responsibility and you still can not collect easily.I would not accept this applicant but if you have zero other options and you wish to drop your screening standards never offer a risky tenant applicant a term lease.

So if property collects $1k at the time of sale we give manager $600 (10%) PM fee at the time of sale if new owner does not renew PM contract and goes with another company.

You could have 5200 in rents due but only collecting 1800 which would change your numbers drastically.

I wouldn't rent to a tenant with that many collections. 

Will you have to evict and pay court costs while not collecting rent in three months?