They can just wait you out while you pile up legal fees and taxes you owe on the lot each year.The only leverage that you might (emphasis on "might") have is that it looks like there could be a sign on the parcel for the bank.

I've told our Realtor to only send us listings with management fees below $150/mo., but it looks like we're missing out on some otherwise promising properties that don't meet that threshold.I know those fees are tax deductible for rental properties, but in the long term (ie., when the mortgage is gone and we're paying this fee every month for the remainder of eternity) how big of a difference does that make as far as cash flow is concerned?

@Ben@Ben Leybovich undefined should address this.You may want to ask the seller if he would mind if you earned a bird dog fee, an assignment fee, get the property under contract, and assign it for $20K, don't get greedy.

Also, at least here, it would depend on how they were built-for separate fee simple units, they would have to have separate utilities, not crossing the common property line, otherwise they would have to be condominium ownership if divided.

3.500%Taxes ESTIMATED AT:$420.00Refinance Loan Amt (without UFMIP / Funding Fee):Hazard Insurance ESTIMATED AT:$100.00Loan Amt (without UFMIP / Funding Fee):$405,300PMI/FHA Mortgage Insurance:$455.96UFMIP / Funding Fee PERCENTAGE:1.750%MI Factor1.350%UFMIP / Funding Fee DOLLAR AMOUNT:$7,092.75HOA DuesTotal Loan Amt (with UFMIP / Funding Fee):$412,3932nd Mortgage Principal and Interest$0.00Interest Rate:4.250%Loan Term (in months):360Value:$420,000TOTAL MONTHLY PAYMENT ESTIMATE:$3,004.69Loan to Value:96.50%Estimated PayoffESTIMATED FEESESTIMATED LOAN COSTS--BUYERESTIMATED PREPAID & ESCROW COSTS--BUYER (SEE NOTES BELOW)ORIGINATION FEE0.000%$0.00Per Diem Interest on New LoanASSUME$48.02LOAN DISCOUNT0.000%$0.00(from the day of funding through month end).

We pay a flat fee for someone doing this.

It went pretty smooth for me.The fees are pretty high for home path, and my interest rate was a little higher.Some people seem to have trouble finding lenders that allow only 10% down for investment properties.

I come up with the following expenses:Mortgage Rate 4.75%Length of Mortgage in years 30Monthly Mortgage payment $129.11Taxes $47.33Sewer and Water $-Trash $-Heat/Utilities $-HOA $-Cap Ex and Ops $150.00Insurance $54.92Mgmt Fee $40.00Vacancy $30.00Total Expenses $451.36

Until it closes.This deal can totally be done, but it would probably take a third party escrow to handle the assignment fee and you would either change vesting to their name etc...

The goal is to get a property under contract and keep the existing financing if possible, I don't want to come up with a big down payment and get financing, control it, and rent it out for cash flow.I'd be putting money in to catch them up, and pay any fees.