Maybe I'm no longer a low risk bond investor, maybe I'm parking my money in $VOO instead, CRE REITs, or perhaps higher risk higher return bonds. 

In this space it's all about building a portfolio, my 1 house clients are at the highest risk because they can only rely on that 1 property, they don't have others to help alleviate the burden.

However, there are likely multiple more terms involved in your partnership with this hard money lender.

Consider the aesthetics, privacy and reduced contact with passers by if there are animals involved.  

@Fred Robertson, I was actually reading a little about this sort of thing today and it is absolutely the kind of thing where you get a CPA or certified financial planner involved!

Leveraging equity does involve some risk, so it's important to have a sound strategy to avoid overextending yourself.

It’s a balancing act of controlling costs while also controlling risk of personal injury to your tenants and property visitors as well as maintaining goodwill with all involved at the properties. 

Definitely a question for a tax attorney/accountant, especially with the dollar amounts involved. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

I am slowly going crazy with how expensive Massachusetts is and I am leaning towards looking at cheaper foreclosure properties.I understand there is some risk to this but I am beginning to think this is the only option I will have because of how fast the market is growing.Thank you for any insight you may have!