You've probably heard of big Landlords losing property, but only because they were flagrantly violating Fair Housing, running a slum, or otherwise violating the law in an egregious manner.

.• That the grantor/mortgagor was insolvent at the time of the execution of the deed.An estoppel affidavit (executed and acknowledged by the grantor/mortgagor, attesting to the fairness of the transaction, the consideration exchanged, the value of the property, and other factors showing an intention to make a genuine transfer) or a recital (inserted directly in the deed) are supporting documents used to forestall challenges to these transactions.State law and local title standards must be consulted in regard to the consideration and treatment of deeds in lieu of foreclosure.What a GREAT post!   

@Samuel Coronado - cash flow on new builds here right now is fairly non-existant without putting more than 20% down. 

They usually come with fairly steep rates and high fees/points at closing.

But, assuming this is a fairly accurate number, the little I know about San Diego (and quick look on Zillow for multifamily properties) seems like $1.5mm is the minimum asking price for two units.  

. - Florence, Lakeside, Yachats - This is fairly accessible region through Eugene and also offers spectacular landscapes and amenities.

They gambled, and lost.

Thanks for the feedback; some quick stats: 9 doors across 4 states, about 50% LTV ratio with a Net Income of about 17% and cash on cash of about 3%.....in fairness those numbers include some overall business expenses not tied directly to one specific property.

Fair PricingThey’re not the cheapest, but they’re honest and transparent about costs.

I agree that is will be a gamble as to how well it will do.Also, ask the owner if they will entertain partial owner financing to keep from dragging family and friends into this risky business venture.Maybe even rent from owner for a year with right to sublease to see how it goes before committing to a purchase.