If they're already charged off, why would you declare bankruptcy?

If the project violates that min DSCR, then you're somewhat at the mercy of the traditional lender.. will it declare a default and charge you the default rate until the DSCR is back in compliance or will it charge you some fee to waive the violation for that year or will it charge you a fee and increase your rate until back in compliance or will it go all the way to accelerate the loan and foreclosure.Traditional lenders will tell you that they're cash flow lenders, not collateral lenders. 

I also work in Manhattan so ideally finding a MF in Hoboken/Edgewater/Weehawken would allow me to declare primary residence and get the mortgage tax benefits.

@Stephen Barton way to use the hustle muscles!  

In California there is a full disclosure law, any huge issue known to the seller that devalues a property in anyway is declared in the purchase agreement.  

Not having much experience, done deals or money sort of makes me hesitant to declare myself an actual 'Real Estate Investor'... although I suppose having Time and passion, determination to succeed are 'investable' resources that count just as much as Money.Yes, this post is broad in subject matter, but it sums up a few challenges I'm facing and I'm asking for help.

If anyone has borrowed from a private lender as Will stated at above usary rates then they could declare all payments principal and if they wanted treble damages they would need to go to court.I had this happen way back when in my 20's someone lent me some money at 20% interest and we got in a spat...

In my area, it's hard to find a 'typical' operating budget because of differences in the development declarations.

I don't believe personal liability would stop at the umbrella limit if a judgment was declared against you for a higher amount.For me, the LLC is partly a psychological tool to help me treat land lording like a business, and partly asset protection.

At one point he started the process of declaring BK.