They'll hit you with fat fees on the front/back end, jack your rate up, and take advantage of borrowers who were either too stupid or too impatient to save up for a reasonable down payment themselves - and they want to be paid for taking the risk on (essentially - subprime) borrowers like this. 

Like for many of us in the RE business that could be running a successful PM company A brokerage or sell real estate and make fat commish or Loan officer for conventional or commercial loans etc etc. you need that outside income so you can afford to own rentals.One of my good friends has a picture on his office wall  its his dump truck trailer and old back hoe.. thats what he started with on his own.

If you go belly up on that property, you will still be required to pay back the lender and not just the lost equity, but all the fees and what not too.

Hi @Scott Bell - I too am in the same situation but will be moving to Colorado Springs.

I agree with @Nate Bell I stay away from HOA.

@Sophia Berry in addition to a builder's risk policy (and yes - like @Nate Bell I have one go to agent) you will always want to put your properties into your umbrella policy.

Do you think that if you're small you have a disadvantage to overcome in dealing belly-to-belly with your tenants?

@Greg Gangle it’s safer in my opinion to take your cash and stack it so you have an extra fat reserve account, ie if you pay extra on the mortgage you have to refi, sell or put a Heloc on it to access that equity in the form of real money.

@Clarence Bell I messaged a couple friends thay are in the field to see if they're interested I know alot are crazy busy and ill pass along the info

@Nate Bell I can’t click the link, and I can hardly articulate myself anymore.