Thanks for the story. It shows lenders/sellers desperation.
In the future, if you look at rental properties, I would recommend the following formula:
real rent – (0.1 * real rent) – PITI = cashflow.
The 10% is for maintenance/vacancy. The property may look new/good, but, if you’re going to be a landlord in the long run, you will surely have maintenance costs & vacancies.
And, BTW, the PITI above would have to be on a 30-yr fixed mortgage, not an ARM 🙂
