Check with any of the big apartment associations and you'll find that these numbers are right on the money.What happens when you hear people claim inflated cash flows is that they are ignoring real world expenses, such as evictions, legal fees, lawsuits, captial expenses (not really an operating expense), advertising, office supplies, exterminations, etc.

In Sept 2009, the lender finally filed lawsuit to "quiet title".

Originally posted by "Ryujin84107":The last thing is remember that the Garn-St Germain Act is the LAW and you shouldn't confuse it with the US Code I'm not sure what you mean by this, I was quoting said Act.If you remain a beneficiary (rather than making an LLC the beneficiary) you've gained no protection from law suits.

You completely ignored management (whether you do it or not), maintenance, capital expenses, vacancies, utilities during vacancies, advertising, entity maintenance, legal fees, damage done by tenants, evictions, court costs, lawsuits, fuel so that you can drive to your rental 1 1/2 hours away, etc, etc, etc.

The same is true of lawsuits, etc, etc, etc.

Within the period of one day, you are involved in 2 lawsuits!

Operating expenses also include management (whether you do it or not), maintenance, advertising, vacancy allowance, office supplies, legal fees, evictions, court costs, utilities paid by the owner, lawsuits, fuel for your vehicle (going to and from you rental), damage caused by tenants in excess of the security deposit, etc, etc, etc.

Operating expenses include taxes, insurance, management (even if you do it), maintenance, vacancies, utilities paid by the owner, advertising, legal fees, damage done by the tenants, evictions, lawsuits, office expenses, court costs, setout fees, etc, etc, etc.

Preforeclosure deals also have a much better chance of turning into a lawsuit, when the previous owner decides that the buyer took advantage of them.

or do you have multiple companies in order to not expose all of your portfolio to the risk of falling to a single lawsuit?