While it only returns 5.23% currently, it provides a great cushion allowing sufficient time to wait out a crash without having to resort to selling properties at inopportune times - at fire sale prices.5- I keep a large part of my portfolio in high yielding notes secured by real property - and while I want every loan to make payments as agreed, my experience indicates that a certain percentage will default with me owning the property during periods of economic contraction.

You can make this an offer condition and review it during your due diligence period. 

-How long is the hold period, what would the seller/you be putting in with cash if any-What is the % of equity gained -Can any party get out early-What the risks, and who has rights to the deal

If you had lived there first, turned it into a rental and then moved back in within a certain time period (I think it's 5 years) and then lived in it again to qualify before selling I think you get the entire exclusion.

I have all of my rentals, which in all is about 9, due on the first day of the month with a grace period through the fifth of the month to pay rent.

This looks like many things but here are some idea starters for you:- Ensuring that payments are automated for receiving rent, paying mortgage, paying utilities- Ensuring the lease version used is up to date & calendar notifications are on for renewal periods- Tenant screening process is defined and followed- Turnover process is clear and team is in place- etcIf you need a CPA suggestion, I love Samantha Kelley.

It has gotten harder with the new lending seasoning period of 12 months but it is still doable.

Real estate appreciates over periods of time so it's a snowball effect.

@Michael Snider-Held we hear stories like this all the time in the LTR market about the national companies.These companies are setup to make money, period, with little oversight from management.So, owners need to make sure they read management contracts and UNDERSTAND what is covered and not covered. 

Good turnkey providers should be able to minimize vacancy periods and reduce turnover costs.