I think @Brian G. and @Jaycee Greene hit it on the head: an event occurring/debt resetting.When the debt forcefully resets on some of these assets, valuations drop if the submarket cap rate has expanded and/or if the operator can not show a good t-3, t-6 etc due to economic vacancy and rising opex (insurance, r&m etc).If the operator can't inject equity to cover the difference, then trouble arises.

Keep in mind the maintenance of 3.3 acres especially with insurance and fire mitigation. 

For a single property, a strong umbrella insurance policy may offer sufficient protection at a lower cost.

Now that it’s a rental, you can deduct mortgage interest, property taxes, insurance, repairs, maintenance, and depreciation to reduce taxable income, but depreciation will be recaptured at up to 25% if you sell.

With the right tax strategy, you can maximize deductions and reduce liabilities, while having the right insurance and reserves in place will protect you from unexpected costs.By Implementing a quarterly financial review to assess performance and make adjustments to avoid cash shortfalls.

I couldn't be more pleased.This type of investing would highly recommend for those folks who don't want to be on the phone with lenders, property managers, insurance companies, trying to upload 100 documents to the lender, etc.Recently, I sold a rental property and did a 1031 exchange.

The house has appraised for $335k, my hard money note is for $242k, and I'm looking at only about $15k out once closing costs, taxes, and insurance are accounted for.

On the roof is there hail damage where it can be insurance claim worthy?

Even if they had renters insurance, it comes with a $500 - $1,000 deductible just like your insurance.

Our avg monthly expenses with reserves is around $1500 (mortgage, taxes, insurance, utilities, reserves ect).