I give 3 or 4 construction draws for 100% of the estimated rehab cost, but I give them in arrears of each stage of the construction, so the borrower must also have 25 - 33% of the cost of the rehab in reserves, as well as reserves to cover carrying costs.

The responsibility to order the POS rests absolutely with the owner / seller.The closing date came and the ownership was transferred but no POS was carried out.

He bought about two years ago with very little down, triggering a PMI payment.Between regular mortgage payments and subsequent appreciation (mostly appreciation, as it sits on the water, on a canal) there is now substantially more than 20% equity in the house.The issuing bank is telling him that regardless of the equity in the house, he has to carry the PMI for a minimum of five years before he can get rid of it.Is this correct?

But they are a PITA to transport and carry.

Good tenants are gold, and I work hard to keep them.Problem tenants are not worth dealing with and shouldn't be indulged.

Gently remind the seller that that to invest in this property, you have to cover repairs, closing costs, and carrying cost. 

My guess.An interesting point now that I think of it.......this was an old thread so be advised, Dodd_Frank compliance may have changed, I'm not on it even monthly much less daily, but consider that second mortgage carried back by an "exempt" homeowner.

They had theft coverage available but it carried a $6000 deductible, and that's the best that REI offers.  

Here is a pic of the new doors with gold Washi tape. 

@Bill Brandt & NEVER die with a huge carry forward loss !!!