As a Certified Financial Planner™ the first thing we need to address when speaking with a client is mitigating their risk and the use of living trusts is one way in which we can do so, especially when it comes to real estate.I do not want to get into too many details here but there are many different types of trusts used for a number of different purposes.

Again... some of these extra expenses are mitigated if you owner-occupy. $3000 for closing costs seems low.

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.

What are some of the risks, and mitigation I should be aware of with something like this?

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.

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.

I thought the security deposit could only be held to mitigate damages. 

., (9) level of investment experience you have, (10) familiarity of the market, etc.As an investor, one of my primary responsibilities is risk management... my ability to fully understand all of the risks that I am taking and put processes/structures in place to minimize or control these risks.And if you are a successful risk manager, i have found that in REI you are able to mitigate the downside and generate returns that ARE NOT commensurate with the risks you are taking and do so by providing a triple win to your investors, your tenants, and yourself!

While you can hold the tenant responsible for the rent till the end of the lease, it's your duty to mitigate damages.I have an early termination penalty written into the lease, one month's rent.

Do you feel that maybe you could have done more to ensure you mitigated your risk as much as possible?