I think @Brian G. and @Jaycee Greene hit it on the head: an event occurring/debt resetting.When the debt forcefully resets on some of these assets, valuations drop if the submarket cap rate has expanded and/or if the operator can not show a good t-3, t-6 etc due to economic vacancy and rising opex (insurance, r&m etc).If the operator can't inject equity to cover the difference, then trouble arises.

@Jaycee Greene for right now where I'm standing financially 5-10

Quote from @Jaycee Greene: Quote from @David Ojo: Hello Jaycee!

Quote from @Ben Fernandez: @Jaycee Greene Yes.

Quote from @Ben Syzek: Hey @Jaycee Greene! 

Quote from @David Robert: Quote from @Jaycee Greene: Quote from @David Robert: I recently became aware of a very cheap property (roughly half of after repair value) and upon looking at it in person I found out why it was so cheap: there is severe cigarette damage throughout the 1st floor (basement less so, but not entirely without damage); there is visible dripping tar on every wall and the smell is awful.

Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-Of-State Rental Properties Book by David Greene is a good book to check out.

This hotel may not be everyone's favorite cup of tea.

@Jaycee Greene MR1 or MR2

Quote from @Eric Huntermark: Quote from @Jaycee Greene: Quote from @Eric Huntermark: Hey everyone!