@Jonathan Greene, that's an extremely good point. 

Even when vacant you'll be able to see what's going on with water usage.

So, often times those are paid by the landlord and included in the rent (if they are flat fee) or possibly billed back to the tenant (if they are based on usage).

I have cleaned up a number of these deals over the years.. they are all great when they are working and everyone is on the same page but when they are not.. there is extreme risk to the original seller especially in Texas were a bank or lender can get a money judgement on purchase money loan.. out west not so critical original seller just gets their credit trashed if it was not already.. but there is no money judgement available to the lender for a purchase money owner occ loan in first position.

Purchase price: $290,000 Cash invested: $60,000 Single family residence in an extremely fast growing community.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.PM us if you’d like to discuss this logical approach in greater detail!

Generally, out of state owners have property managers and other ways of managing that makes it extremely difficult to meet material participation requirements.

Moon is extremely valuable people - they aren't making any more moons!!!

I also maintain cash in CDs that could be utilized in case of extreme circumstances.

Blah, blah, blah...Its not good advice to give someone such extreme advice when one doesn't have all of the info.