@Eric Gomez it really all comes down to you--your risk tolerance and your rehab tolerance.

High risk tolerance but young family of 5 so need to be more risk adverse than I’d like to be.

There is zero tolerance though.

Depending on your risk tolerance and perhaps LLC formation costs (including opening accounts, perhaps credit cards, etc.), you might try something like 10 deals or 3yrs, whichever comes first...   

@Melissa S Vrobel$350 on $2,000 would be tolerable. $350 on $1,000 might be tolerable depending on what has happens to your market lately. $350 on $700 would be pretty darn intolerable for many.

Sometimes with real estate investing you have multiple approaches and its really just up to your intent/strategy and risk tolerance as to decide what to do next.You probably should find yourself a good lender that will work out these aspects for you, i.e. your financing/loan options. 

It seems like he's a long term tenant that pays, and you've tolerated him for 7 years, so he cant be that bad.

You will learn many things such as their management style, how well they can run a business, their risk tolerance and etc.

It's generally recommended that you consult a CPA or Attorney familiar with these factors to help make a decision that fits your risk tolerance and overall investment goals.

It's generally recommended that you consult a CPA or Attorney familiar with these factors to help make a decision that fits your risk tolerance and overall investment goals.