But if you're willing to take a tiny leap of faith, I think the returns are solid, the diligence and the integrity are there, and the states/markets/submarkets and the asset class are thumbs-up.

And one point the OP made about their credit.. only gurus talk about that.. by the time someone is days away from foreclosure their credit is trashed  having it actually go to sale will hurt a tiny bit .. but your not saving anything. 

The 4 guests smoked marijuana in the house (strong smell), broke a window blind and a picture, put a hole in the bathroom wall, chipped an end table and worst of all vomited on the couch and front porch.

Maybe some easy refreshing of the mortar but I would also plan on digging down for better waterproofing.Now, no way I would build a tiny little place on that lot.

Here are the numbers:IncomeTotalPartner ContributionsManaging Partners Debt$0.00Partners Deposits$987,459.99Total Contributions$987,459.99Operating IncomeAirbnb Income$50,186.50Square Income (Vehicles or add-ons)$6,741.04Total Operating Income$56,927.54Total Income$1,044,387.53ExpensesPurchase of propertyCost of House-680,000.00Closing Costs-$26,744.44Total Cost of Purchase-706,744.44Set Up ExpensesHouse Improvements & Care taker home addition-116017.03Adding Tiny House-52130.83Furnishings-68403.65Vehicles-43150Set Up Costs and Advertising-2339.53Total Cost of Set Up-282,041.04Operating expensesCare Takers-14535.9Additional Cleaners-1505Cleaning Supplies-2670House Supplies-1340Landscaping-4230.66Utilities (Power & Water)-8204Internet-315Pest control/fumigacion -120Pool cleaning/maintenance-2220Vehicle Gas-552.3Vehicle Maintenance and Repairs-6625.01Welcome Food for Guests-115Property Repairs-4999.64Bank Fees-1208.06Accounting Fees-1085Insurance-955.74Other Expenses-1071.2Total Operating Costs -$51,752.51Total Expenses-$1,040,537.99Net Income$3,849.54Net Operating Income$5,175.03Now 5k for an investment of 970k is not a good investment.  

I've also had guests buy their own TP and trash bags and leave the extra.As for toiletries, I leave the traditional "Starter Set" of shampoo, a little bar soap, conditioner, and lotion  (the tiny hotel bottles). 

Only if things go very, very badly, and you are in the tiny fraction of loans that default do you... go back to where you are right now, having "purchased" (foreclosed) on a property for 65% to 70% of what you believe it's worth (otherwise, you wouldn't lend 65% to 70% LTV). 

Is there a promise of some new chip plant?

As for tiny homes, they aren't considered real property and don't add value to the property.

Safer assets like a T-Bill allow you to borrow 96% of the value where blue chip stocks like Apple are at 70%.