So, from that perspective, I like the idea of "involuntary conversion provisions" to not have to deal with increased "income" in 2023 (because of the insurance payments) and huge "expenses" in 2024 (because of paying the contractors).I thought that has nothing to do with CSS, partial dispositions, having to "retire" the old assets and start tracking the depreciation of the new assets (after all, the CSS allocated 5K to the old roof covering, and we paid 18K+ for the new roof).

My question is once I have a deal signed for an apartment with seller carrying back down payment I need a partner/guarantor which would help qualify for bank loan with their income and cover closing costs. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

WIll your insurance cover it?

Hi @Justin Buckner  We, 6 partners, raised $510K among us to cover the down payment & closing cost, and the rest was financed through a local community bank.

There was a direct deposit on same day as the payment which would have made the balance enough to cover the rent payment.

Hi Petya,The key question is whether the rental income from this property will cover your monthly expenses, including the mortgage, taxes, insurance, and any potential maintenance.

Speaking with other agents and friends in those markets, they're seeing investment properties going for far above appraisal value and buyers are having to bring enough cash to the table to cover the difference if they really want it.

I would recommend listening to the BP podcast, they cover several different topics/investment strategis and it would be a good tool for a new investor that's unsure how they want to invest.