The tenant consistently paid late after pandemic, eventually declared bankruptcy, and leveraged the legal system to drag out the eviction process for nearly a year.

Hearing it from someone else solidifies my thought process in analyzing the market.

However, I do rely on my trusted network of local professionals for different parts of the process.

Now you repeat that process until it's paid off.Disadvantages:It took a while for me to set up.Bank account is always low, lol.People can spend a lot with that amount of credit.People think I'm weird when I tell them DId you analyze what would happen if you moved all of that money you were using to pay off a heloc, not get a heloc and put that money in a treasury or other type of account that got you 6% interest or invest in an ETF or something lower risk?

You also need to account for the eviction process, state laws etc...

The process went smoothly, and I’m happy I got a tenant so fast, but the high supply of new builds in the area makes me nervous.

I use a loan servicer who processes the borrowers payment and then sends to me.

Will research more on the process.  

This is very much a learning process for me 50% rule, 2% rule so on so forth.

For example Delaware has additional default rights and processes that an investor can follow if they feel they are not getting old books and records.