Make absolutely sure you have them sign a lease, just like any other tenant and hold them to it.Think long and hard about renting to family.

Low overhead and I will never out perform or underperform  the market.  

Some target lists to consider:Absentee Owners with Equity (be aware that in some areas this is getting over-mailed so you might want to mail exclusively to this group)Seniors with Long-Time Ownership (often ready to downsize or transition to assistance)Owners with Low Financial Stability Scores (combine with age, high equity and length of ownership to get extra layer of motivation)

Not wanting to go down too low and banking on the fact that the husband believes in the saying "happy wife, happy life" I countered with 150k and luckily, they accepted.

@Maria Villamar If you can't get the "Official" notice data, there are other ways to find homeowners who are struggling financially.If you work with a list broker, they can pull owners with Low Financial Stability Scores (FSS).

Do you know of any banks that offer checkbook HELOCs that don't require withdrawals, have low annual fees, and have no restrictions around how many financed rental properties are in your name?

If I send notes to someone now I ask them how many notes they have bought and what their timing is. 90% of people out there are not real buyers - window shoppers or will throw low ball offers out there.

Doug is absolutely right. 2k isn't enough to compete.

Should I refinance the property to a fixed rate and apply again even though I will no longer enjoy my low interest rate?

If you think it sounds absolutely horrible PLEASE tell me.