In my experience these are the levels of how financial fraud is doneLevel 1 - The “sponsor” is a fraudster from the beginning and the entire investment is a designed fraud designed to steal the investor's money Level 2 - The sponsor initially intends to operate legally and honestly but the temptation of easy access to money, usually fueled by addictions to drugs, sex, partying, etc. leads to the bad decision to line the sponsors own pocketsLevel 3 - The sponsor intends to operate legally but a crisis in their life resulting in a need for money leads the sponsor to “borrow” from investor’s funds with the full intention of paying it back ( which they are unable to do).Level 4 - The sponsor intends to operate legally but the assets under their management incur substantial loses; the sponsor attempts to cover up these loses by “temporarily” borrowing from one investor to pay another or submitting false results.

Quote from @Kaustubh Johri: I'm in the market to find a suitable software/service for my wholesaling operations.

Since they can't leave or operate they have been holding the payments.

Ideally, you operate as close to break even (or slightly better) in a market that's strongly appreciating.

@Vitali Ganon we own and operate several MF properties in Jacksonville and we 3rd party manage for other traditional rentals 1-80 units.

Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.  

Depending on what you want to accomplish as far as asset protection or just general business operation.

We look at a per door expense, and see if the operator is above or below that.

There will need to be some sort of established history (rental income and operating costs) in order for a lender to calculate the income.  

If I go with the 5900 policy I will be operating at a loss and I will be forced to sell the house.