I'd also restate to them that you are not going to involve yourself directly since that is their role, but that from her email it sounds like allowing her to early terminate with no penalty IF it is returned in good condition may be the best option.

I would go to an insurance broker and see what options they have.

If not, are there non-construction options that would be a better return on investment?

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

(I told him we have other options, but I would rather that he gets to make the profit instead of the bank.)

So I plan on going with the FHA 3.5% down and hopefully going for something in the 3-400k range in a neighborhood like back of the yards, mt greenwood, south shore but also open to other options.

So there are several good options here in the Ohio market. 

• Purchased directly from a mom-and-pop operator off-market• Secured $1M credit union loan and raised $500K equity to close• Existing owner had inflated expenses and below market rents• In-place rents approximately 30% under market at purchase• Expense ratio at least 10% above the norm How did you find this deal and how did you negotiate it?

Seeing a lot of success when people have an unemotional optionality for the project and simply run the numbers when the project is complete - put it on the market for sale and for rent and then plug it into a pretty basic spreadsheet!

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.