If you can find the right tenant up front that will stay a few years and your diligent in your fundamentals in putting vacancy cash aside every month you can mitigate this risk quite easily.My suggestion.

So again, some additional risk mitigation that makes it a little easier to jump right in to full time.Pat

That should mitigate the lawsuit risk considerably

On the other hand there are also a fair amount who are looking for ways to invest outside of Portland while mitigating risk.

No one can mitigate all risk, but I would rather have a chance at being wealthy earlier in life using debt (its what the FED does, and no matter what you think about it, or how you think it is going to end, if they flame out, I could care less if you own you property free and clear we are all in deep doo doo).If you use debt to no more than 70-75% LTV, in todays market, we could still have a correction and you would have an equity cushion.

Your partner deferring payment until the prop sells is perfectly fine and makes sense to mitigate the risk of running out of money (which would necessitate borrowing from a party that is not disqualified, or selling project "as is", likely at a loss).If you had personal cash, you could also partner with your IRA on the front end of the deal (take title in both names), at a predefined % split.Be aware that flipping profits in IRA accounts are potentially subject to the stiff UBIT tax, based on "intent" to flip, which would be determined by the facts of a given case, as well as pattern of activity.

The sale of the home is considered to be for health reasons if the taxpayer's primary reason for selling the home is to obtain medical attention (diagnosis, cure, mitigation, or treatment), or to obtain medical or personal care for a qualified individual suffering from a disease, illness, or injury.Unforeseen circumstances may include: an involuntary conversion (destruction or condemnation of home), unemployment, the inability to pay basic living expenses, or a change in living arrangement such as a divorce or legal separation or multiple births resulting from the same pregnancy, and other reasons to the extent provided in regulationsThe taxpayer's exclusion would have been disallowed because of the "more than one home sold during a 2-year period" rule, except that the taxpayer sold the home due to and of the three reasons listed above.The taxpayer otherwise qualifies for the sale of home exclusion, but there was a period of nonqualified use during which the home was not used as a principal residence (effective for tax years beginning after December 31, 2008).Example: John bought his first home in 2003.

I have no issue using the legal system, but I'm hopeful to us frame control to mitigate the situation.Plus, this is a great learning opportunity for me.

Steve Vawter if it's for you, contact your lender's loss mitigation dept, talk to them.

Mitigate the amount of visits this by coming up with a solid list of candidates to look at when you come.