Properties are acquired, value is increased by bumping rental income and decreasing expenses, and then sold.

If you do research and put the right TB in place then the risk of no payment would decrease, right?

Based on what I have known there's a $70K unpaid common charge, late fees, etc from the management company and the bank is negotiating with them and trying to decrease the amount...

Your new monthly payment will dramatically decrease from what it was before.

Couple that with the decrease in down payments and when things go South many people will find themselves underwater.

The inventory of houses for sale has decreased 4% over the past year.

Though there are legitimate concerns that this complex will push gentrification, I think it will add to the vibrancy of the Hilltop neighborhood.As a new investor, I'm not sure if the addition of this complex will push up rents in the area by increasing average rents and desirability, or depress them because it is adding a significant number of new units, thus decreasing the demand on other units.  

Again, anything you do needs to be able to increase rents or decrease expenses.  

I suspect that I will continue to increase/decrease this reserve, relative to the overall asset size of the portfolio, based on a number of factors.

This would decrease you balloon balance to 280K.