The price you pay plus rehab must be fully recovered in 2.5 - 3 years. 

If you hold this situation for 10 years, that property cost you $100k...and you have to recover all of that $100k before you start making a profit.However, if you put $20k down, and you have positive CF, that property cost you $20k...period. 

That is, I got a first lien position, a DOT recorded, and the houses would be easy enough to recover and sell quickly for discount, even the work was unfinished.

why would you need that in the HUD anyways, when you refi the amount you recover is based on your ARV, not how much you invested? 

Whenever a recession hits, we are always one of the first states hurt economically, and the last ones to recover.

If worst case happens, it seems like you would be able to recover and start again. 

If they fail to pay, follow your state lien laws and auction the storage unit to recover what you can, then wash your hands of it.2.

If you spend $100k (100% down) on that same property to get $8k/year cash flow, it takes you 12.5 years to recover your cash and turn a profit. 

I'm new to the industry (I'm a recovering IT Architect) but in my head I figured there are plenty of reasons to have broker requirements for purchase/sale of property, but I guess I was expecting property management to have its own set of rules/licenses/requirements.I'm in Ohio as well but I'm down at the other end of the state where we don't get the "Lake Effect" weather this time a year :)Thank you for your thoughtful response!

I feel like it allows you recover from your mistakes quicker.