The older and worse condition of the house, the higher the unknowns and therefore the higher the reserves.

Too many unknowns.

I have to say, most of the newbies talking about asset protection is really out of paranoia and the unknown more than actual protection arising from law suits.

And that includes behind the scenes research of everything in and about the deal, and is responsible for disclosure of all material facts of the property, known or unknown to all parties.For marketing, the MLS strength is in its accuracy and ability to link agents together across their market and this is very powerful.

Note Purchase:                                                            $   2,000Liens & Judgements:                                                   $ 15,000Foreclosure costs:                                                       $  4,000Opportunity costs:   unknown but could be positiveHassle with bureaucracy of Chicago     Lots of headaches and money for each paperwork submittal request: maybe more than                           $ 1,000Value of home according to COMPS                         $ 40,000 - $ 48,000Selling to an investor or a buyer for                           $ 30,000 - $ 35,000IS IT WORTH IT?????

Not only do you have to consider the down payment and closing costs, but you have to account for repairs, holding costs, and unknowns that may pop up.

Tape them to bricks and stamp with "addressee unknown"  :)

Unless you specifically reserved the first right of refusal on new tenants,  you're stuck - - you gave away the management and tenant selection to an 'unknown thing'. 

Buyers can't get FHA financing and you can't sell...Too many risks and unknowns for me

The industry is rife with corrupt management companies that make it very difficult for an owner to trust an unknown entity.