If the management company goes bankrupt what will you do?

Unless you're right on top of MSU, you can't command top rents - much of Lansing proper is in tough shape economically, since GM (and its suppliers ) have shed a lot of jobs there, and the state government is bankrupt.

And I have a friend who almost went bankrupt with an apartment purchase.

Then sister went bankrupt, and I bought her 10 acres and house, where I reside,  from Fannie Mae around 2008.

Also the depreciation laws for tax savings have a couple of major loopholes which can save you a large amount on income tax.The negatives are close to zero capital appreciation, a declining population due to the lowest birthrate globally (currently dropping 250,000-300,000 people a year), floating rate on most all bank loans (although it's a near certainty these won't be going up anytime soon as its been said if interest rates in Japan hit 2.5% the government would currently go bankrupt), and the highest debt to GDP ratio of any country in the world putting a dampening on future economic outlook.For net yields you're looking at 3-6% in and around Tokyo, 6-8% in the other major cities, and closer to 8-10% outside of that, although there are always lots of exceptions.  

-I was dead set on not failing so I did lots of work myself because I absolutely HAD to make sure my numbers were awesome in order to convince my wife that I wasn't going to bankrupt us. 

My perspective from the outside looking in is that virtually ever developer I've ever known, and I've known several, tend to go bankrupt and/or dead broke every 8-10 years, every time the market turns down.

I've been in rental business for awhile and had not yet heard of this.. makes you wonder if they can go to a restaurant and eat the steak.. and not pay,, but say.. yup I'm bankrupt..

It is however a great way to go bankrupt if any little thing goes wrong and you don't have a proper cash buffer ...

Their idea is so simple, if you're bankrupt is the house still worthed 75% of the investment ?