I was expecting (hoping for) 8% so I'm probably going to be closer to 10% unless I buy full 2 points?

I hope Mario can mitigage his losses by selling the property quickly to stop the bleeding, or re-tenant and refinance to less expensive debt but this serves as a case study on the perils of investing in lower tier neighborhoods.The amount of people on the internet and social media selling the false narrative of how easy it is to create wealth through investing in real estate, specifically these lower tier neighborhoods is upsetting. 

It would also essentially wipe out $400/month rental income and you'd lose the additional benefits like potential appreciate, tax advantages, etc.If you planned to buy another rental, that would be a different conversation because there might be upside there.

They would likely lose any homestead tax benefits and possibly lose other things as well.

I’m hoping they don’t. i’m being up front about my intentions with the loan officer i’m working with as i’m trying to do a cash out refinance.

My 2 cents, I was surprised to learn on a DSCR loan I was looking into, there was a prepayment penalty, as I was hoping to cashout refi when the rateds dropped...at some point :( 

OK well they will probably move that foreclosure sale date to try to do a short sale, which I hope you know will take several months. the property will likely be valued at market value, and there will not be too much deviation from that number.

Hope to see you there!!

Hope this helps!

I hope your real estate endeavours are fruitful!