LOTS of other questions you need to address as to current status, risk tolerance, future income, etc.

Leverage tolerance, tax rates, starting capital, experience, markets served, etc.

We have zero tolerance on stealing and being misleading.

What's your tolerance for risk?

You'll have to decide what risk tolerance you are comfortable with and how readily available other sources of cash are if you really needed it in a pinch.I close in 2 weeks on a duplex that has been redone in the past 5 years but the home itself is 100 years old... still not sure how I'm going to play the cash flow as I'd REALLY like to be aggressive for the next 5 years while prices are down and money is cheap.

Each investor has a different risk tolerance level and it is up to us as a company helping them to mitigate that risk and give them the pertinent data so that they make an informed decision.

If you do then question for you, is how high is your tolerance for risk into the deal?

You need to know your market, occupancy and competitive rent rates, renter expectations, your goals, risk tolerance, temperament, and your resources.You need to know your local tax rates, state/local landlord rules, housing authorities, insurance sources, financing options, occupancy and employment trends.There are crazy tenants but effective management can minimize the risks.Good luck.

I didn't do an application or credit check, and said to him something to the effect 'you may be able to live for free if you get a decent roommate you can tolerate...'

I'm pretty tolerant to both, but it is definitely not as cold as Chicago or as hot as Texas.