The bank then understands that their borrower no longer owns the property and calls the note due.

One of the biggest challenges of investing in Rustbelt cities is knowing where to invest and properly understanding the cooresponding pros & cons.Here's copy & paste advice we share to help to address this challenge:-------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

I understand they purchased their property bit earlier at a lower price, but the difference shouldn't be so significant.

It’s a good idea to speak directly with an insurance agent who understands multi-unit properties to customize coverage for your specific situation.

I am Just trying to understand if I should fight them or not. 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

I took out a HELCO on my primary - I understand not cash flowing - could have taken out a lot more but only took 50%. 

Include the finish selections as well so they understand what is being installed (Carpet is cheaper than hardwood and if you install hardwood herringbone thats even more expensive).Then you have the general terms as part of the contract which are insurance requiremens, licensing, schedule, indemnifications, lien waivers, case of default. 

However I am struggling to understand and evaluate the risks involved with cash out refinancing 2-5 years down the line.

I understand that a GC is suppose to have subs, but this was work I had contracted with HIM, it was not electrical or foundation work that needed to be subbed it was to him and I was under the impression he was the one working.