The problem with misusing or misunderstanding terminology, as most here do, is it creates this false sense of the great deal that exists when it doesnt.

Fact is, a lot of us have no business investing in real estate (or any business for that matter) if we simply are going to misuse the money that is made.

Most of them don't realize they are misusing contracts, and they will be understandably annoyed or angered at my remarks.If your attorney has approved your contract language, then who am I to argue with your choice of attorney?

I'm sure there are other ways of doing this, but having been a member of BP, and as someone seen how the system can be misused, I question whether it has served its purpose.

Some tenants become unable to take care of their home, due to mental ill health, substance misuse, learning disability and so on.

I think "wholesaling" is actually the misuse or wrong application of law allowing assignments of contracts, and the method of dealing in bad faith and the underlying purpose to evade an agency relationship is not valid.

Misuse of the $500 allowance for maintenance. 

Also, would an LLC be actually considered as misuse of corporate assets? 

@Thomas O'Donnell as others mentioned; in general, if it's an item that breaks due to typical wear & tear, that's usually the owner's responsibility, whereas items that break due to tenant negligence/misuse are usually the tenant's responsibility.In my experience, one of the more common tenant-caused problems involves plumbing blockages (e.g.; tenants dumping food scraps down sinks, flushing stuff down toilets etc., and blocking the drain lines in the process).So, it's a good idea to have very clear terms in the lease for these issues--terms that state that the tenant is responsible for all costs associated with plumbing blockages (including costs stemming from flood damage that results from plumbing blockages).Having said that, I'm not a lawyer, and the legality of including these types of terms in a lease may vary from state to state.Good luck out there!

I hadn't seen Rent/2 - P&I, I'll see how things shake out when I use that as well.The problem isn't exactly the cash flow, and maybe I am mis-using terms since this isn't my industry: But I consider cash flow less relevant than overall value growth (Still, it'd be nice if cash flow were positive), and I am very conservative with appreciation, calculating it only at 1% avg.This is why the question of debt leverage is so important to me.