My wife is medical field and I am business for self so i really don't need the right offs.

The good news is that the fine is reduced to $1000, after I submitted a nice and polite letter.I asked PM why the fines not following the formal process starting from warning.

For over $80K/yr gross rents in future on $500K purchase (just under $200K in cash w/ conventional 30yr fixed.) if you can hold out and let the rents reduce your mortgage in the mean time..How long will it take to get there?

On Jan 1 2015  the sale price is 30k and will be reduced by $250 every month until the tenants buy the house if the ever do.

Not a bad strategy to reduce your out of pocket.  

The people buying for cheap will reduce market rent rates to lease up fast bringing the market down permanently or at least for 3 to 6 months.

I realize you can lead a horse to water, but my theory is that if If just 1 in 100 tenants listen or read these books and help their financial situation, it may reduce my turnovers and cost of turnovers.I'm curious as to if anyone has tried this or something similar in their welcome package.

Now your cash flow is reduced by this amount: $1000 -$360=$640.$640 x 12 months =$7680 - Your cash flow for the year.Going back and looking at the fact that you invested only $30,000 cash, we will calculate the cap rate using only the cash involved:$7680 divided by $30,000= 25%You can see now that using cash only versus a high interest mortgage for this market is significantly increasing your cap rate. 25% vs 13.3%.Using the same scenario, you can use buy 3 homes with the same $90,000 and have a total cash flow of $7680 x 3 = $23,040 versus using all the cash in one home and getting $12,000 per year cash flow.There are other factors to consider of course...

If so, it would seem like it would be, in effect, a penalty since you do not get the tax benefits and your cost basis is reduced. 

This could really reduce the hourly rate of return from your rental business per hour of your time invested.