There is an amazing difference in knowledge, skill, and experience between long term agents with whom real estate is their career (life) and the agent whose in real estate because he’s a career SALESMAN selling the hottest thing; you know, the guy who’ll be selling oil well drilling participations next year, and advertising services the year after. 

With the hefty down I'd aim for a lower I/O rate of 5-6%..Conventional terms would be in the high 8%'s.

Remember, no system is perfect, so avoid the temptation of constantly chasing after the next shiny object.

Numbers in FL are not looking great with insurance/taxes/HOA fees/etc for cash flow but willing to  focus more on just breaking even (or close to even) and having significant long term appreciation.Option 2: take the cash, pay 20% long term capital gains and wait as market continues to dip for a prime buying opportunity.Would greatly appreciate insight/advice from those much more experienced and knowledgeable than myself.

I do wonder if this could be accomplished with a 7 residential unit and using one unit as a short term rental though. 

But your right this is how these guys get away with this stuff for so long..  

If you were to rent it out long term, that's where you cross the line. 

Examine the terms of financing. for keeping a rental property as opposed to selling, and take long-term investing objectives into account.

(Not that they actually set mortgage rates - but they influence them.)You now know that as you look at 2/1 houses that anything priced near or above $145,000 isn’t worth pursuing in the short term… so you look for ones that are cheaper than that.  

@Amy Lin - If it were me I would have an experienced attorney start the eviction process immediately.They are probably going to hang on as long as they can rent free as they have the closing proceeds.They might care about their credit if they do plan on buying another place, so you might have some leverage there.