Or one of the heirs lives there who is supposed to take care of financial obligations, but he doesn't without letting others know.

We don't even know yet if such loans can be paid off with bank proceeds as they are ill concieved notes, if they are not valid obligations, the security interest is gone as well, if there is no valid security interest to be paid from disbusrements, the bank may not pay it off.

Also insurance will be higher in these areas and a wind mitigation inspection is required to get an insurance discount.

If you want to do a quick "litmus test" on an area, you can take the median or average gross rental rate of the area, as well as the the average property taxes and insurance for the properties you're looking at.

While he was working at our 4 family, an insurance guy was walking around our building.

I'm going to play devil's advocate a bit.If you're getting a waiver and getting proof of insurance, I say leave it.

I do not actively manage the property but I do actively manage my property manager to make sure the tenants are screened thoroughly, property is maintained, tenant needs are met, and tenant obligations are met.

Then they may come after you for the deficiency which will include the principle, accrued interest, force placed insurance, property taxes, legal fees, etc.

While the tenant and you are still obligated under the current lease, I actually asked mine before we bought it if she would sign a new one-year lease with us after we closed so I'd know she would stay a full year and that she had my info on where I wanted the rent sent, no confusion.

What about repairs, taxes, insurance, vacancies, capital expenses (new roof, HVAC, etc)?