Regular property managers for single houses and condos may not be willing to take them.I don't want to self manage either.Do the tenants have a higher rate of default than condos and single homes?

I've been looking into switching PMSs also, but I'd really prefer not to.It was recommended in a Facebook group to do this setting, but since my default min stay is 2 days I fail to see how this is any different.What seems like it should work would be a setting like this, where the min stay just before an unavailable day would be bigger than that amount of days.But this setting doesn't seem to make any difference on my calendar that I can see.

Non-compliance will result in penalties, including potential default.

Understand that private money lending carries risks, including borrower default.

The income from the sale of securities is considered 'portfolio income' and is considered non-passive.Rental activity in general is considered passive unless you are able to treat it as active or if your income is below $150,000(Then you can use some losses).By default, the answer will be you can't unless your real estate is considered active or if your income is below the exception.

Scott Scheel has a good course about commercial real estate, but he concentrates more on apartment investing in his course while he is actively buying retail buildings and not apartments.The loan default rate on apartments is 58%, so before you buy an apartment building think why is it so high.Another avenue to consider is mini storages if you want to own real estate, the default rate is only 16%.

What I see for market conditions to change is an uptick in unemployment and continued defaults.

At closing day, part of the full cash purchase amount in escrow (~700K) will pay the default amount (pending) they owe the bank, 20K will go to their own account to help them find the next rental place.

not to be a debbie downer but I would not use my primary residence for a heloc and then invest out of state.. especially a C or D class property.. too much risk in my mind  also keep in mind Heloc's can be called or frozen thereby putting you in default and you wont know it until after the fact they are not fully amortized loans.

Yes, being in a second position is generally considered higher risk because the first mortgage takes priority if the borrower defaults.