It’s a ludicrous situation and reinforces my view, in addition to the precariousness of the market, that most people mis-use 1031.  

(On one occasion, this partner misused funds for personal use for $1400, and I have gotten some of that back.) 

@Miles StanleyI can add to this that, as you pointed out earlier, it's important to understand the underlying concepts behind these metrics, because then you would be able to tell when others have misused/abused them.

@Scott Schultz this seems like a completely solvable issue and a misuse of how you're perceiving leverage. 

Sounds like you need a BP HUG,,, OMG what a nightmare, from what you stated she's behind on rent.I'd tell her your filing for eviction on Monday unless she agrees to vacates by Noon on Monday, file for eviction for , failing to vacate after proper notice, unpaid rent, lease violation of pet, noise, misuse of utility water waste.

The term is still prevalent and often misused in my opinion.

To protect yourself, make sure there is something stated in the loan docs showing that the reserve will be set aside for the first 6 months of payments.In regards to the $60,000 hold back, some lenders want to manage the construction process and mitigate the possible misuse of funds.

I may have misused the term "turn-key" in that the mobile home I'm looking at for $20K is not in need of major repairs to make the home livable and rentable. 

As for the leaking toilet, unless there is something in the lease requiring the tenant to report issues to you, not much grounds to charge unless you can prove tenant misuse caused the issue. 

They either admitted to damaging the faucet or did not and the plumber would need to provide an affidavit specifiying the damage to the kitchenn faucet was caused by misuse or negligence of the tenant.