Thanks for your response, it solidifies my position on this property.

The tenant rented the unit with the expectation of it having a working stove, so you should maintain it in that condition.

At that point, it becomes pretty easy to add up all of your positive cashflow, subtract off all of the negative (including commissions and sales costs) and get a net number that you can use to calculate ROI/CoC.

Since we plan to maintain our jobs for at least another 5 years we knew it was important to buy "easy" properties.

Not because of a general RE crisis, but because it is a crappy neighborhood and properties get trashed and are hard to maintain.

Those are the fringe benefits that come with the expenses you will have to maintain your license.

Having said that, long-duration (6-12 month) put options, that are out of the money (the market would have to decline at least 5% for them to start generating positive $ returns) are not that expensive.

I am almost positive its his own money.

Even on the blanket loan I did for 3 of my houses.OTHERNot that big but they also wanted all the taxes, insurance, etc, in escrow accounts that they would maintain.

With FHA loans you might become ineligable by moving out and not continuing to maintain the property.