So if you have 95% LTV you will need to pay the loan down to maintain that LTV when you sell one of the batchI would also advise you to get a servicing company involved.

Most due to them not selling their mortgages, so they had a vested interest in maintaining performing notes.

-Investors,Flippers and property managers need leads and good propertiesSolution: banks need to make deals with investors, so that the bank maintains ownership and the investor has control of the property.

However, it also solves your "2 out of the last 5" problem for maintaining the capital gains exclusion, if you do it right.

If you take shortcuts here the units will have to work much harder to maintain heat and that isn’t good.

Mark,You are actually in a really good situation in that your property is being maintained and you are collecting rent every month.

There was an HOA that I assume maintained the common areas.

I will continue to maintain that having lots of bank failures (and consolidation within the industry) is actually a good thing...

You didn't mentioned (Or I missed it...) where this unit is located, but in Florida for instance, there are condos building that are almost empty and the burden of maintaining the common grounds is carried by few.

If the properties around your investment are not well maintained or something happens in that area of your property that can significantly affects property prices how much control you really have over that?