Outwardly I didn't see any major issues, but I thought if a house is 203K or cash only, normally there is something fairly major wrong with it to where it won't qualify for a standard mortgage.I asked the agent about it, and he just said something generic about the 203K loan helping to pay for repairs, and that in this case he thought it was just for replacing the carpet.

Since you are replacing the heating system, you might also want to look into whether you should change the fuel being used, especially if the fuel is oil.

Hey guys, thanks for the tips.

Many (mostly struggling) sales people join networking groups like BNI, Le Tip, etc and they encourage you to network this way.

(I admit the selling costs might tip this slightly if it's a close call.).* Your max LTV on cash-out will be 75% of value, and "value" will be at the mercy of an appraiser.

If anyone has familiarity with that market or tips I am all ears!

Based on this goal, I was trying to understand the 2% rule.Thanks for the excellent tips.

Also all of this would be contingent on how "not new" the items you list are, and when you think they'll need to be replaced.

If so, what might be the costs of replacement?

Here is a link to a recent thread that had a similar discussion:http://www.biggerpockets.com/forums/52/topics/90868-early-termination-situationThe "let them go amicably and find a replacement" approach makes sense for difficult people like this, so the penalty becomes the only point to consider.