If you can afford it; sometimes you would have to lower the rent to keep it rented out.

Lower payment?

At least this way you can lower the payments and get out from under the high interest rate.

Well, for one, after the appraisal came in a little lower than expected, the broker who set us up w/ this loan contacted the appraiser & got it bumped up a bit in an effort to get the loan amount we wanted to pay off some bills.

Simplistically, the lower the credit rating of a contracting party the greater the risk that the third party reference entity will default on its payments and this increases the cost of the credit swap.

In my lower end blue-collar neighborhood rentals I agree with Mike.

However, throw in some of that guru style letter campaign marketing; an ad in the newspaper; some fuel to drive to look at some of the properties; entity maintenance; legal expenses from time to time; phone expenses; office expenses; etc, etc, etc and that number could be significantly lower.

(example, real estate can be leveraged more, stocks have lower transaction costs) From the biggest to the smallest differences.

Lower the personal income tax rate and the corporate tax rate (which is the second highest in the world).

I think I will need to offer him more than the 8% on his note for the lower down-payment though.What do you guys think I should offer him to get this property with 5K down and definitely not a dime over 63,750?