When you see what people do with old space heaters, guards and safety removed, plugging in several in one overloaded extension cors,... you can see where the concern is coming from.

For instance, the pre foreclosures being outdated here in KCMO...

Not sure the final outcome, but I'm guessing that is a case where you think things are risk free, but I expect the purchaser was out significant legal fees that were not reimbursed and ended up not getting the property.I've always thought about this in the rare instance that a super nice and super valuable property goes to sale with a mortgage on it. 

Please have a look.Based on my extensive research:Success Rate: 70-80% for experienced investors; 50-60% for novices.Failure Rate: 20-30% overall, with 10-15% resulting in outright losses.I'm looking forward to your response and the response of any BP members who would like to weigh in.Quote from @Mark Cruse: Never used software.

In most instances when one person is putting up all capital, best to enter into a 3rd party GC relationships rather than become partners.

@Travis Boyd Outside of instances where FHA or other extremely advantageous financing options exist I am a proponent of the LLC for investment real estate although the liability piece is overstated.

For instance, how did the due diligence "come back as clean" and the "leases were solid" if the rent was not paid up to date and paid REGULARLY?  

In my almost 20 years of doing Subject 2's and working with other investors in almost every State in the US, in the very few instances the Due on Sale is called it is because if the inexperience of the Investor in not knowing how the transaction is to be done, (not closing with a Title Company or Attorney, not doing the Insurance correctly)Most of all, (not communicating with the seller) Bank calls the Seller to offer them Life Insurance or some other service, and the seller tells them, "I don't own that house any longer, some guy took that house from me and put some renter in it"If you dig into any investor that tells you they had a property or a friend of their brother in laws Collage roommate that had the Due on Sale clause called, you will most likely find that the investor screwed up somewhere.This is why Education and knowledge is needed on any Real Estate transaction.I get calls almost everyday from someone who screwed up on a Subject 2 and is asking to be bailed out, many times they do not want to pay for help, and things just get worse.If you know how to make the Bank Comfortable with the transaction, all is good.Last year I had a couple of hedge fund managers call me asking how they can offer their under preforming loans to Investors to by Subject 2, wow what a great deal, I could call Pace and he would have buyers the same day for a 1,000 homes, but the legal aspect of this would hold the Hedge fund liable so we could not do a deal.

.● Replace missing elbow and extension on the downspout on the southwest corner of the house.● The soil around the foundation should be watered with 1-2 inches of water per week during hot and dry weather patterns.

In some instances, it was difficult to locate the source of the high water bill, but ultimately, it was discovered that there was some leak on the premises.