No turn key provider is going to sell you the house and break even.

I think it's best to break out as many of the expenses as possible.Owner occupied, I bet you can do quite a bit better than 4%.Your PMI looks really high.

Housing cannot go up and up and up with no end, employement can not always be at record breaking lows, stock market cannot always be at record breaking highs -- all while debt load has hit record highs as well, and that a recession should have already occurred in 2017, 2018, 2019, but the Governments did everything they could to keep the economy artificially propped up each of those years.

FYI, at 85%, the deal roughly breaks even.

With the way states are declaring a rent moratoriums and people are forbearing their mortgages, somewhere a link in the chain will break.

I want to ask them to send us some proof that they apply for unemployment, so we can confirm that they really lost job and we should give them some break.

See below for rental, new build, and renovation analysis and let me know your thoughts...Rental Analysis: One option is to rent it out while we decide whether to renovate or knock down and build new, we would break even after 6.5 years, this would obviously require re-negotiating the balloon payment timeline.

It can be very hard to break into unless you have an airline connection.  

Then deduct 10% ($160) for vacancy, and 10% ($160) for maintenance and I'm basically breaking even.Are my calculations just totally off? 

You may take care of this when you live there, but you should assume you'll be paying once you move out.I bet you just about break even on this property (after you move out).