People die, become incapacitated, or incarcerated, again, courts may hold up payments, while in default a lender may not proceed.Collateral is destroyed by insured perils but it's not sufficient to pay a second off.Other liens can take priority, child support, tax liens, student loans or government debts, so check the priority of liens, but what also might be the likelihood liens might be created that can still go the head of the line.Fraud in the origination process, by the lender, it may not be discovered until later on, arising from some other matter.I have  no idea what Dave does on a recourse basis.

Someone in another thread yesterday mentioned how building a good reputation takes years and can be destroyed in minutes by messing up, that is so very true.

I am sure you have seen it on the news, but I live in the middle of Illinois where a major tornado destroy several hundred houses.

I finally completed the eviction of a tenant I inherited when i purchased a duplex. She trashed the apartment and the repairs are costing about $5k consisting of $2k carpet, $1.5k doors, drywall, etc, $1.5k paint....

Both units were occupied but the tenant in one side was destroying/destroyed the unit.

If he was out 5 years, then yes, I would hope that he wouldn't make bad choices and destroy other lives again.I also don't accept those with drug or violent felonies- automatic rejections.I will say that I once hired a contractor who had a vehicular homicide charge about 10 years ago.

I think with a higher pet deposit and the higher rent you'll be fine, if they check out.They own their own house and would likely be careful with their dogs destroying their own home, while tenants can just move.

As @Steven Hamilton II says the land is never depreciated.There are some components of the land that could be depreciated, but are typically not itemized as such.For example:Trees & shrubs have a certain life span and destroyed over timeSidewalksDrivewaysUnderground pipesSeptic systemsParking lotOutside light standards

I am a fairly new investor, and just got a call from my property manager in Kansas City (I'm in California) that the house is destroyed.

This is great for planning and also locking in low prices without having to pay the cash at the time *The houses usually aren't destroyed because the owner is "voluntarily" giving up their house.