As a general rule, it's best to learn how to handle problems before they become problems. make a list of the potential problems you could face as a landlord: rent rates, marketing, collecting deposit, late rent, unpaid rent, abandoned rental, early lease termination, unauthorized pet, etc.

This can be an extremely time-consuming and frustrating process but needs to get done.Borrower Calls – Once the servicer finds your borrower, they’ll make scheduled collection calls notating what transpired and what actions need to be taken.Collection Letters – A variety of collection letters are mailed out based on the delinquency of the borrower.Borrower Statements – Print and mail out monthly borrower statements.Incoming Funds from Borrowers– Any incoming funds from the borrowers will be received, recorded, and distributed to the investor, less the servicer’s fees.Year-End Tax Information – At the end of the year, the servicing company will print out all eligible borrowers who have made interest payments greater than $600.

The biggest winners are the lawyers, collecting their standard 30-40% fees lol. 

I encourage others to share their experiences and strategies as well, as collaboration can lead to collective growth and success.

Their scope just includes the properties they are managing for you.So, whether you continue doing it yourself or hire a professional to do your books, you'll need a "master" accounting platform that collects all property-specific transactions as well as non-property-specific transactions (general business) into 1 place.

Many of them will jump into property management, thinking they can retain clients and earn some easy money by collecting rent checks.

I have met very successful investors that take deep dives on NPN commercial notes and immediately go in and have one of their companies appointed as Receiver of the property and collect rent and maintain the building.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If you have positive cash flow with the HELOC, you can wait and collect cash flow until it sells or sell at a loss and move on.

We used to do pet deposits, but now we collect a one-time "pet fee" upfront that is designated for damage repair and cleaning on the back end.