Take ownership of your mistake and learn to do the proper due diligence recommended above😊

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

This is a lipstick + flip.New floors, paint kitchen counters, cabinet faces, new bath, install central airWhat was the outcome?

@Dave Charron, just a guess but perhaps the company wasn't properly insured or the guy wasn't an on the books employee and also the company probably has no suitable assets that can be sold off to collect against them. 

Excited to be here to learn how to invest in real estate properly.  

Confirm with your CPA to ensure proper application of these losses.This post does not create a CPA-Client relationship.

By using the proper insurance and the right legal entity you can eliminate or minimize any threat by lawsuit to seize equity in a property.

Be sure to look up proper contractors in your journey.

If done this way, the investor could use this as a powerful tax strategy to spread the taxable event over years, lowering the effective tax rate faced from the taxable events.I have heard professionals compare it to an installment agreement, but with more control.

A few properties are still registered, you can check them here: https://aca-prod.accela.com/COC/Default.aspxIf you do not have a rental registration, you cannot evict, and eventually they're going to start throwing out fines.To get a rental registration in Cleveland Proper you will need the following:  - links attached 1.