BTW, no one wants a war zone, but everyone's idea of what constitutes a war zone is a little different.  

My point was making a bad or poor decission won't really constitute the issue being beyond your control.

Stock + any assets owned by business are the self directed 401k's and constitute its value.    

Old real estate proverb:  Only thing worse than a vacant apartment is an apartment with a bad tenant in it.NOTES: Screening is key, as already noted; ask for last month's rent up front;  for first 3 or 4 months, do a monthly walk through; have a clause in your leases that 2 or more written "infraction of lease" notices shall constitute grounds for eviction; and finally, if they miss rent payment due date--follow your l/t laws and take action immediately.  

While I cannot tell you what your “technical” options are, I must say this:Under Article I (One) of the US Constitution (so, a long time ago, when They were still thinking about ensuring justice, tranquility, common defense, etc., They also thought of this concern,) Congress is responsible for establishing laws on the subject of bankruptcies.

Is that a solution to this problem, or would that constitute some kind of fraud or something? 

Is simply buying an owner occupied multi family enough to constitute the label "real estate investor".  

Unfortunately, the rule does not include guidance on what would constitute sufficient residual income.

There is a flood of REO activity on/entering the market (albeit foreclosuregate is gumming things up a bit at the moment), and simple supply/demand dynamics are dictating that these houses sell cheap in many instances to clear inventory, even with agent commissions paid, and do in fact constitute outstanding deals.

The property is purchased at so low a price to real value, and the discrepancy between actual value and purchase price is so transparent, that money investors are willing to put up 100% of the required funds for a minority ownership stakeWhile all the above scenarios do occur, they constitute a very low percentage of real estate transactions.