And frankly, I would seek a different HML too. 

Having money tied up or subject to penalty/restrictions if moved around is not worth any minimal gain it might see in the short term (for my purposes).

That graduate is going to be more likely to be mobile, seek a new job in a new location or a house of their own.randy

With our personal home (paid off) our two rentals (valued at about $350k for both) and this lump sump- we hope to cash in our chips and live overseas and I’m seeking strategies on the best route to do that.

I would purchase this property with the loan option with the cheapest closing costs and NO prepayment penalties because you will be refinancing within 6-12 months. 

How much income are you seeking? 

Purchase price: $55,000 Cash invested: $155,000 I just recently came across a post on the BP forum "Seeking Biggest Mistakes" and figured I'd share mine.

Id include that the penalty for improper handling of the security deposit is 2x the deposit.

Fortunately they had the 20 percent down as requested, and the terms we worked out were 9.5% (a little below market rate) for 20 years with no early payoff penalty!

Fix your lease to ensure it stipulates stiff penalties or termination for violations.