I'm not understanding what is going on here.

I don't quite understand why during the refinance period the monthly cashflow drops.

With that said, the desert cities are changing their vacation rental rules often, so plan on spending some time talking with local experts and understanding not only what rules each City has now, but what changes are likely in the future. 

Now this isn't an option for everyone as where I live there are probably only a dozen multi-family homes total, so I understand if this option isn't possible. 

I understand your point about liability policies but what happens if you personally get in a car accident and kill a high income individual like a young brain surgeon or lawyer?

If you want the word docs, we can provide those too but need to make sure you understand that any material changes should be done only under supervision of an attorney, and that adding clauses does not make them legal or enforceable.

@Nathan Guyette - I don't know if I understand your question.

The logic is that we collect rent no matter what for 12 months after signing the lease, understandable.

It’s helped me understand the different trades that are involved with rehabbing a home.

I’ve been reading through the forums on a regular basis, I’ve read “Set for Life” recently, and I worked through creating my own rental calculator like Scott did in the book to try and better understand all of the money related aspects that go into a rental property.