The intent of this article is to provide our mortgage community with a guide, if you will, as how to mitigate and truly discern if the entity you are speaking to is truly a REAL lender.

If you don't and something happens then you need a risk mitigation plan.  

. §§ 250.206)Tenant Allowed to Repair and Deduct Rent: No StatuteLandlord Allowed to Recover Court and Attorney Fees: No StatuteLandlord Must Make a Reasonable Attempt to Mitigate Damages Caused by Leasee: No StatuteAbandonment of Personal Property: (Act of Jul. 5, 2012, P.L. 1091, No. 129) oThe landlord must send a notice to the tenant stating that personal property has been left behind with contact information for the landlord.

couple things either the investors don't like the area and don't agree with your numbers.. or they don't have confidence in your ability to execute.And or your not paying enough for the capital if you can't pull this off you should offer up a 50 /50 or 70/30 to the money so you at least get a deal.. and start to build your experience bucket.Its one thing I see most that are starting out do that is in my mind a critical error.. they think they should be able to borrow private money and get as cheap as money as possible.. when in fact starting out it should be the opposite ... they should be looking for someone who will take a flyer with them since they have no money or real experience and will mitigate a potential loss with a very big upside.Once you get a few of these under your belt and have track record and maybe a little jingle in your pocket you can go HML route with no partner or your current partners will have enough trust and faith to give you bonus or better returns.those starting out need to get deals done no shop for the cheapest money waste a ton of time on the front end finding the deals and then lose them because they could not get them funded.If you made 10k on this deal and the investor made 40k at least you got something instead of having to make this post that your deal failed.Think about it.Even after 40 years in this business I know my competition for investor dollars is always trying to find cheapest money...

You can not charge him utilities once he vacates.You are fortunate he has given you heads up about his situation.Advertise and as soon as tenant moves in you stop charging him for rent.Security deposit statement needs to be sent out properly, and you would withhold deposit against unpaid portion of the lease until it is occupied, You have responsibility to show and rent as soon as qualified applicant is available to mitigate any costs.

I'm trying to mitigate my risks upfront.

Also, you cannot do 1031s on your primary residence so this is the tax mitigation strategy for your primary.  1031s are the tax mitigation strategy for investment property.  

Tree saves are typically negotiable thru mitigation money anyway. 

Patrick Philip Expect everything to go wrong, then of course try to prioritize and mitigate the risk until you're comfortable enough to move forward.

In that case it will be very hard to refinance the mortgage and pay off the balloon payment.A couple of ways to mitigate the risk are:1) negotiate with the bank that after the 7 years the interest floats to market rates (e.g. prime + X%)The only reason smaller banks do these short term loans is because they fear of locking funds while interest rates go up and they could potentially male more money.