This happens...it’s the risk you take in development but doing all the due diligence you can on the front end mitigates that risk substantially .

If this is the case, you might want to collect additional deposits and/or modify lease language to mitigate your risk and aggravation.

I am aiming for such a cheap house to mitigate any risk, and I think it will be a great property to start my investing with. 

Im basically leveraged up the wahoo currently but that's the price for expanding quickly  (32 units in 2.5 years)over $4 million in properties and 75% leveraged. only have $120k in reserves haha...rental income is at 65k/month so that does help mitigate some risk

You mitigate your risks, share the rewards, and learn from each other?

I do my best to mitigate my risk by making the lease a joint lease and requiring co-signers for each of them.

I do my best to mitigate my risk by making the lease a joint lease and requiring co-signers for each of them.

As far as losing everything, I think there are a couple of things you should remember and a couple of things you can do to mitigate your risk as best you can:A.

what strategies do you have to mitigate/avoid/transfer/share said risk?). 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.