I have just seen too many great borrowers default when things in their life change, they then higher an attorney and fight like crazy to delay the lender from foreclosing!  

This way if default occurred I would not have to go through foreclosure.  

The art is to increase the rent without running off GOOD tenants (very important, if the tenants aren't ideal tenants then non-renewing becomes the default option).

Sure the underwriting can be done in a way to ensure the LTC is low but do you really want to own that asset in the event of a default? 

.: @Peter Woernerthe other issue is that investors are coming in now based on BP advice circa 2016 =(I think Becca is investor since GFC era if I am not wrong …but you are right , all BP default message has been outdated and foolishly may actually create danger situation for new investor. 

Of our 50 plus loans about 10 went into default in the financial crisis of 2008.  

Which market to lend in, that states foreclosure and usury laws, do you have trustworthy boots on the ground there, and can you handle a default situation if and when it happens? 

In case of default, it is a judicial foreclosure, just like what the taxing authorities have to do. 

I'm sure you were aware of temporary labor services, but you should seriously consider them to keep everything legal and lawsuit free:http://www.laborready.com/docs/default-source/default-document-library/labor-ready-fact-sheet-2014.pdf?

However, you will need to make sure that your losses will escape the passive loss limitations, meaning you need to change the default behavior of Sch E.Showing material participation can be a trap.