The benefit is the expected return to the immigrant is negligible since they are just buying citizenship.

So if the tenant's negligence causes any significant damage, your insurance will go after the tenant's insurance and your rates will stay low.

@George Nikolakakos let s say if I hire a licensed PM, and it turns out that the PM is totally incompetent and negligent in managing the property, I think the landlord is liable too.

Loaning money to any individual is not an acceptable investment.Folks have assumed you want to borrow from what I read, you said invest, you might be a stock broker, I have no idea what the plan is or was.Non-profits may invest so long as the investment meets legal restrictions.State law dictates, in the absence of state law, it becomes prudent judgment and the board of directors could become liable if grossly negligent, N/P boards are held in a pretty protect position, more so than a for profit entity, so the threshold of negligence can be pretty high.Prudent would be FDIC insured accounts or SIP, municipal bonds rated A or better, no stocks, no corporate bonds, government fed fund accounts or T-Bills, but this requires more money than we have here.N/Ps may not hold excess funds like a for profit, the funds held must be justified as to the need of meeting the stated mission.

I have a clause in my lease that states negligence or abuse on the part of the tenant means they have to pay for the repair.

The tenant has claimed that I acted negligent and did not do my due diligence.

MI applies to FHA and VA loans only.It sounds like maybe the person you asked jumped to some conclusions about your situation, or that your existing and proposed rate with reverse points are too close together resulting in a negligible PITI and MI reduction.

The extra liability is negligible, the costs are trivial compared to the tens of thousands of dollars I earn/save each year in commissions, and the continuing education classes aren't at all a big deal.Again, it sounds like you are basing your comments off the beliefs of inexperienced investors and those outside the industry.besides the fact that nobody likes a HOG (including banks and asset managers)I'm not really sure what this means.

You would have to be negligent in some way shape or form I believe.I had a guy claim he fell down my inside stairs b/c they were too steep try and sue me by sending me a letter from an attorney demadning I forward my Homeowners insurance policy to him.

Reason is, it depends on the reason for the tenant action, if you were negligent as the member/manager then it can go on you and to all that you own anyway.I'd say some attorney guru advocated such a tatic to generate additional legal fees and something to sell.