Roger I can't really answer your question.You have given no specifics about this property with rent per door levels, number of units, risk exposure for you on the loan, etc.One strategy is to buy a nicer property in a better area for an 8 cap.

Those in some niche are only exposed to a sliver of the big picture and no niche operation exposes an operator to the different variables, circumstances and types of exposures to occurrences in the real world.

At some point, the village is still responsible for limiting how much exposure we the landlord has to these bills.Just because its a rental and they know we'll eventually have to pay it, doesn't mean its ok to let them run it up for months and months unpaid. 

I always try to give myself as little exposure as possible, and also keep all ventures separate.

This article considers reasons why studies of mold exposure after the hurricane do not show a greater health impact." http://www.annualreviews.org/doi/abs/10.1146/annurev.publhealth.012809.103643?

In my experience with contractors, I have found several things helpful: 1) Have a third party act as intermediary to facilitate a meaningful meeting 2) Determine what exposures you truly have (legal, financial, etc.) and be clear in your own mind what you do and don't want to happen 3) Determine what leverage you have upon this clown.

I think you have bigger exposure there.

That might make an injury to your snow-shovelng tenant excluded from coverage and you might have a potentially huge uncovered exposure.

At the very least, you will have some exposure to the local market, the ability to see a whole lot of houses, and the ability to gain a veneer of professionalism.

You made it clear, as I suspected, that having a licensed originator put together a borrower file on an SF loan, while maybe necessary and prudent, doesn't reduce any of my responsibilities, liability or exposure as a lender.