Fair enough, but you're blanketing your statements in a way that makes it sound like it's the type of investment or the location of it that's the source of the failures.

Bad underwriting is the primary failure point for most IRR comparisons, and it makes it tough to make apples-to-apples comparisons across various sponsors/brokers/investors because some underwrite very reasonably, or even conservatively, others underwrite aggressively, and yet others underwrite as if they live on another planet.Another consideration is that what is desirable to you in an investment dictates which performance indicator to focus on most. 

If you would lose it all if the next paycheck didn't come, in my mind you are at significant risk for failure.

I would like to include fees into my lease agreement for failure to follow through on lease covenants. 

Know the law, obey the law, treat people honestly and fairly.That will protect you far more than any LLC or insurance policy or attorney.these are great commandments to follow.. stuff can happen but so can a dual bird strike causing catastrophic engine failure and a landing in the HUDSON river.  

@Nathan G.The answer is: failure to underwrite properly.

If cash flow is the goal and you're in any one of the high cost markets that don't cash flow, then the investment is a failure from the start.

I would love to hear any and all success stories, failure stories, and book recommendations to learn more about the process, architectural design considerations and costs involved.Regards,Kim

Your failure to properly seal the unit allowed a squirrel to get in. 

. - Favorable credit history free of negative credit issues which may indicate that the applicant has a pattern of failure to timely pay financial obligations.