What if they have collections or judgments?

This is because insurance proceeds are the path of least resistance in terms of collection (more on this below).

Budget 5-8% of gross collections as maintenance then tack on the property managers margin to give yourself a better idea of your management cost line.

Explain that you acted in good faith, relying on their inspection and approval.- Consider reimbursing the new owner: While not ideal, paying the $6k might be the most cost-effective solution to protect the contractor's license and your reputation.- Learn for future projects: This experience underscores the importance of thorough inspections, even on recently installed systems.- Check statute of limitations: Depending on your state, there might be a time limit on claims related to construction defects.As a hard money lender specializing in fix and flip deals, I've seen similar situations arise.

Even if you can track down their bank accounts, you can file the garnishment once and collect whatever is in the account.

In year 1 I would collect about $17,900 in interest and $3,400 in principal.

Quote from @Denise Evans: The law changed it to 4 years after the first auction, or the first sale by the tax collecting official.

You can invest in anything except the following:  Life insurance (SDIRA only) and for both collectables and disqualified parties/prohibited transactions.

What if they have collections or judgments?

We have a collection process through our management software we use.5) small dollar amount in Iowa I'd say go for it yourself.