Personally, I like the way we do things, it’s a safety net not only for the most vulnerable, but also encourages risk taking because life can only be as bad as the provided safety net.

However, if you raise the asking price, you will be vulnerable to the appraisal.

IMHO, unemployment will remain low and interest rates will remain highish so we won’t have a recession—I’m an optimist :)I think another vulnerable group consist of commercial investors whose loan terms are coming up.

With little to no money your vulnerable especially as you add more units. 

People in recovery are a vulnerable population.I forgot to mention that another place you would learn more is by getting the certification training by PARR, the Pennsylvania Alliance for Recovery Residences or by the local  NARR chapter, if you are looking to invest in a different state.Best of luck with your investing. 

I understand that this would be leaving us in a more vulnerable position as grow near the end of her lease and I was not even sure if this is even legal because these funds are contracted and held in escrow.

May they all go down in flames.

If your friend can't do what he was supposed to do to this point, and he's behind by $5K, and then goes into debt another 2.5K to you, and that's just to get him to the next draw - and he's still got $36K in draws to go.......I just see this imploding.So, as someone else mentioned, if you're willing to give your friend the $5K to help him try to make this work, with no expectation of getting it back, that would be a really nice thing to do.On the other hand, if it goes down in flames and now he's lost the $5K & the $2.5K extra promised to a friend, it seems to me he'll feel terrible about that and that might not be doing him any favors either.I tend to only do deals with friends where I'm guaranteed to get what I need out of the deal, and in those instances, I'm very generous. 

My biggest concern is if I put the 3 day notice up and he leaves and the place is empty and then the other tenant who was on the lease and left bc she started using meth comes back and says she didn’t move out that could leave me in a vulnerable position.

So i'm vulnerable, I'll just have to put that behind me and move forward, again this is about my money.