When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

its crazy how he has put accounts in here with only 1 post to talk positive about pace morby's mentorship, this guy is such a scam and I am not the only one exposing him... 

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

This doesn't mean I'm not exposed to tail risks that could demise my life, but I feel a lot more protected and have no real stress in my daily life. 

- Securing the property- Removing the waterIf your furnace was stolen, you may need to get propane heaters to facilitate water removal.

My Glendale house still performs well, but it just seems to have a bit more on the member management side than the rest due to the members I have been exposed to. 

MTR's provide better rents than LTR's with less of a headache, turnover & exposes than a STR.

By buying this new asset you will be exposing yourself to risk, which is good if the returns match it.

So I get exposed to really great deals pretty frequently.

If your property manager is not listed as an additional insured, they may not be covered under your policy in the event of an incident on your property, leaving both of you potentially exposed to liability.It can save you money.If your property manager is not added to your insurance policy as an additional insured, they may be forced to purchase their insurance policy to protect themselves.