LIMITED LIABILITY COMPANIES□Do you have an operating agreement that defines the relationship between the company and between members and what happens if the arrangement needs additional capital, there is a disagreement between co-investors or one of the co-investors becomes insolvent, goes bankrupt, divorces, becomes incapacitated or dies?

Save up for a down-payment/closing costs/rehab, pay down your debt, get your DTI (Debt to Income) ratio at a good level so obtaining financing will not be an issue.Do not go bankrupt on your first deal, have an emergency fund in place.I think it's crazy to jump in without working on the above first.

.), but he is absolutely convinced that there's no way I could buy lower end homes in my city to rent without ending up bankrupt.

If they go bankrupt during period can bank take property back?

Tenant Improvement Allowance (TIA) which can be $10-$30/foot upon signing a lease, brokers fees another 6%, a failed business goes bankrupt and leaves you vacant and after 6 months you find a tenant but guess what, there's more TIA and more brokers fees.I kind of see commercial properties as a giant furnace of money.

Each recession an incredibly high percentage of them go bankrupt. 

However, keep in mind that even the most creditworthy tenants can begin to fail over time or go bankrupt, as history has shown us time and time again.

He's built a company from scratch to $100 million, then bankrupted it, then built another company from scratch to $100 million and sold it. 

No magic, therefore you are just as likely to be bankrupt as millions of people were 10 years ago.

I dont know how people buy at those prices and dont go bankrupt.