My leases carry water same as rent, aka if unpaid are subject to judgement for rent not paid.

I feel that to have success it's necessary to pair eagerness and enthusiasm with good sense and sound judgement.

I certainly don't mean to rain on your parade but I think you need to do a little more homework before committing to your current plan.

Just curious what is typically used to estimate what ordinary maintenance/repair costs to get a good judgement of NOI to help determine deal analysis.Thank you,Nick

Are you pursuing the judgement at all?

It also protects the asset from any further encumbrances and prohibits wouldbe judgement creditors, including the IRS, from attaching or placing liens against the property.

It is a judgement call in which criteria include active participation, passive participation, purpose, etc.In any case, since no general solicitation or advertising was done, the deal probably qualifies for exemption from registration under the private offering exemption, or similar such on the state level.No formal Reg D would be recommended as this is a small transaction.  

Once the judgement is in place, they then can and will garnish your wages and bank accounts.

If they do not agree to pay rent while you look for someone new, you can take them to court for rent and get a judgement against them.

I know it was risky but I have faith it will turn out good with patience and not upgrading too much; Once we get over the foundation hurdle (damn rain) and roof, we are good to go on the interior.