So a small problem like a leaky sink which could of been fixed by a plumber easily now is a flooded kitchen before you get a call because the tenant was trying to save $100 and was ok with keeping a bucket or towel under the leak.

I believe you can find someone willing to invest in you if the deal looks great on paper.10% would be a good number.Mine are different as I am lending the full amount (purchase and rehab). 

I didn't think they liked to hold commercial paper for smaller rentals longer than 10 years or so. 

At closing you literally sign a paper that states you will live there for a year.If you're looking to flip, I would think that these type of loans wouldn't really be good for you anyway..

@Sean Graham, I recently had a tenant who was non renewed and they didn't pay last months rent so they had a deposit for their new place.I am in the process of taking them to small claims court for breach of contract where I will ask judge to also have them pay my costs to file and serve them assuming I win.If you receive a judgement and they still don't pay them you can file another form to garnish their wages.I don't intend to make garnishment a hardship so they have trouble paying rent at new place and will be open to a 12-36 month payback term, so long as I am made whole on rent and fees.This is my first time going thru the process so I am uncertain of outcome, although I have a paper trail for rents paid and unpaid, and texts from them admitting they were not going to pay.Here is a helpful link.http://www.ag.state.il.us/consumers/smlclaims.htmlBest,Ashley

Your client will have to go through the probate process @Kelsey Schiefelbein.When your client is ready they'll have to file paper work and the court will appoint an administrator since there is no will.This is called the appointment phase and the next schedule court date will usually happen within the next 30 days..

I’m holding off signing papers to this condo I won at auction until I figure out if the water damage is going to empty my pockets.

Not just on paper, do couple deals first.Then connect with a tax expert to discuss the best setup for your next phase, as @Jana Cain suggested.For now - keep your LLC as is, a sole proprietorship.

Its all economic theory, but interesting to think about; especially since one of the paper's looked at 17 different economic over 150 years.

Plus, if/when rent control becomes real here......I'll make a million $ on paper over night almost.