Smaller facilities have smaller operating budgets so any one bigger repair or required maintenance item can blow your annual budget.

I chose to carry contracts/ the paper and exit.  1031 if you want to stay in, but have your replacecement property in mind to avoid becoming a motivated buyer.  

The only issue we have had getting the claims paid is when we filed against the renter's old policy and not their renewal policy, however our sister company in Denver (who initially turned us on to Rhino) have stopped using it after a couple of issues collecting.We have tenants carry 2x the monthly rent in Rhino coverage in lieu of a traditional cash security deposit.

Additionally, Mezzanine Debt may sometimes allow for a second lien recording, providing an extra layer of security.On the other hand, Preferred Equity generally does not carry a maturity date like debt instruments.

For example, if the rent was 1000, and your total prin/int/taxes/insurance/HOA payment for that property  was 800, you would only have to carry 50 dollars a month with the rest of your income.

While visiting the house, there are numerous items which need remediation including flooring, light fixtures, landscaping, some drywall work.

This includes some major items like below upgrading septic to elgin septic system 20kupgrading electric to new cod 20ktree cutting trimming 10ktrench/French drain 10khvac replacement repair 10knew plumbing 10kcrawlspace repairs 10kappliances replacement 5kdoors replacement 5kmold repairs 3kroof repairs 3kother repairs It is in good location.

They can be all dangerous and some often carry legal risk.

If someone had an "event" in their life (illness, divorce, etc) then we may be willing to accept that, but if someone has had their vehicle repoed, they have items in collections, and a history of late payments, we'll pass.

I recommend to all my property management clients to institute RUBS/Sense etc, there's really great tools nowadays to put systems in place to measure these items, be it water or electric.