Other parts of the world were not as hard hit, recovered more quickly, or have not recovered to a point of stability.Your economy makes investing in real estate dirt cheep when considering cash flow and the possible upside of future appreciation.

Even if someone steals the money, and they go to jail, the money is often not recovered.

If the holdover is not in good faith, the landlord may recover reasonable attorney's fees.

Most experienced hard money loan originators consider anything above 70% to be speculative, because there probably isn't enough equity cushion to recover principal if a serious problem arises. 

An experienced hard money lender knows that if you do not reimburse within the agreed time period, not only will there be additional % penalties, but he or she can actually sue you and recover the property for themselves.1st question you must ask yourself is "is this really a deal i found".

If you fail to return the list and later sue to recover your security deposit, a court may view your failure to do so as your agreement that the list is complete and correct.

Is it advisable to first hired Collection Agency in attempt to recover the rent?

I am still medically recovering and I spend a bunch of my time learning about real estate learning (about 10 hours per day).  

/month in cash flow (after all expenses, including a PM) once I do the Refi.3 - Must recover any cash I put into this deal, including cash back and cash out from the refi, and cash flow, within the first year.Example #1:  Total cost = $55k; ARV = $60k; 75%ARV (refi) = $45k; Cash OOP=$10k; MP = $300/m Cash Flow before refi (6 months) @$700/month = $4,200Cash Flow after refi (6 months) @ $400/month = $2,400TOTAL Cash back 1st year = ($3,400 loss)I wouldn't do the above example #1 since I would be $3,400 short at the end of the year.Example #2: Total cost = $50k; ARV = $60k; 75%ARV (refi) = $45k; Cash OOP=$5k; MP = $230/m Cash Flow before refi (6 months) @$770/month = $4,620Cash Flow after refi (6 months) @ $540/month = $3,240TOTAL Cash return 1st year = $7,860 - $5k OOP = $2,860 total GainI would do the above example #2 since I would be $2,860 ahead at the end of the year....as long as the Cash Flow of $540/month would meet my Rule #2 above of minimum cash flow after the refi loan is in place,and......as long as the refi amount of $45k was enough to move forward with the next deal.

So we would look to the amount of equity above the first lien of $45k to see if there is any chance of recovering on this lien.