If you are doing the subject 2 to rent out and the seller files a bankruptcy, then you need to deal with the renters and find them a place for them these are just things that you could be faced with I hope not.Joe Gore

I started buying some local real estate, some commercial, mostly single family homes.I guess I got greedy and finally topped it off last year with an ocean front property at a great price.I now own 5 properties, most heavily mortgaged.I have been trying to sell the ocean front for the past several months and not getting any bites, have dropped the price by $400, 000, still no takers at $1.500,000.I have about $100,000 left in the bank, my monthly nut for all the properties and my overall expenses is around $26,000.My current income from rentals is about $5,000.I am going through a relationship split from hell, with my ex coming after 50% of the net worth, which of course is only on paper values.She has no legal standing on this as we are not married, but I feel the judge will make an emotional decision.My question is, should I file for bankruptcy, let some of the properties foreclose on the chance that something might sell in time to bring in enough income and/or just pay my own house and expenses, which would give me about 10 months time.Should I look for another investor to come in and fix up the ocean front as a vacation rental?

EVERY full-time professional apartment investor I know has said time and again that an investor new to commercial multifamily should start off with no more than 12 units.As others have mentioned, it is a more complex vehicle than your average SFR and ONE mistake could put you into foreclosure or bankruptcy.

The defendant in the foreclosure filed for bankruptcy one week before the order was set to be put through putting a 30 day stay on it.

I made the offer and won the bid realizing that I could back out of the purchase and loose $5000.00 in earnest money and Auction.com fee.To further confuse me, I learn that my ex-wife is is the middle of Chapter 7 bankruptcy proceedings and her next hearing is 3 weeks away.

But it doesn't look THAT bad, as in bankruptcy bad.

Bankruptcy trustee wanted to have nothing more to do with it (Plaza mortgage bankruptcy was huge and fraud involved by an employee.

You want to look for bankruptcies, judgments, or collections.

That way you have means to go after the contractor and another company will take over in the case of default (i.e. contractor file bankruptcy, not able to finish the work). 

I have found a property through Bigger Pockets that is owned by someone who has filed for bankruptcy (at the end of August).