They are short term loans, usually 6-12 months, high rate, interest only payments. 

Properties are not like stocks where After IPO the market cap is so large that that most of the life changing appreciation is gone. 

The interest rate is not special nor is the 20% down (80% LTV).  

Many investors start their journey by diving into individual distressed property deals, but if you want to grow into a high-volume operation, it’s essential to change your mindset, strategy, and execution.

I want them to see the total picture and then keep whittling down to where they get close to say a 5% error rate. 

It's debt you'd still have to pay back, but at least you will not touch one of those two amazing interest rates. 

The house is a new construction in a Class C neighborhood.The tenants pay late rate ~50% of time, they damaged part of the garage, they have people not of the lease living there, and they leave trash in the yard.Part of me wants to keep these tenants because:-They do pay eventually-I don't want vacancy-The turnover costs could/will be high-How much more damage could they do?

THis is constantly changing and best to stay in tune with your attorney in that state and follow groups like Hornek and GeraciRight Chris.  

Our occupancy rates have been 65-95% during the peak.

Our cash on cash return is essentially infinite as we make money on the delta between the yield of the discounted note that we purchase and the interest rate we pay to our passive private capital partners.