While its possible, you will still incur the transactional costs of deed prep and pay the transfer tax in most instances equal to the assessed property value.

We assessed the situation and told them they could give us 30 days notice and pay in full and we would let them out.   

And how do you usually assess the level of risk in situations where the borrower might not have as much at stake?

Move to duplexes and you learn you need to pick compatible tenants to avoid becoming a mediator in disputes about noise, pets and parking.   

Of course the listed price may not be the actual rented price, but by tracking several listings for a while you can gain a better understanding of the market.For assessing demand, go to FurnishedFinder.com/stats and you can see demand data for a given city.

It’s not just about managing assets, but people too.Market Reputation – Always perform due diligence and assess the firm’s track record through interviews, property visits, and broker consultations.Choosing a firm with these qualities ensures better management and long-term success.

How do you typically evaluate or assess the level of risk when dealing with more complex scenarios, like foreclosures or borrowers with bad credit?

A reserve is unnecessary, but I still keep around $15,000 - $20,000 in my account.The point is, that you should sit down and assess your finances to determine what the worst-case scenario may look like, how much you would need to cover it without impacting your life, and whether you will need to build a reserve.

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

Expect to pay transfer taxes based on the properties assessed value plus deed prep and recording fees when you make the transfer.