Where does their money, that seems to be perpetuated throughout the generations, come from?

This in turn causes values to drop further since there are fewer buyers able to qualify, which becomes a self-perpetuation downward spiral.To sum up: LTV is not static and other factors outside your control can cause dramatic, relatively sudden shifts.

A perpetual game of catch up.At this juncture, I would recommend you sit down with your tenant and review the terms of the rental agreement.

If you plan on holding it in perpetuity then It doesn't matter if the value of the asset goes up or down in the short term.

So after investor’s principal is paid back all cash flows would be distributed 50/50 in perpetuity or until the property is sold?

One thing I found difficult to digest in those shows was the FEAR of foreclosures (short sales, etc) perpetuated and aggravated by your "friendly" buyer's agent.Something along the lines of "OMG, we better submit a FULL PRICE offer for this REO if we ever expect to hear back from the bank, and even that might not be enough.

Most people don't realize that it is something that they can do on their own, and people like to perpetuate the fear that they must have a lawyer or they will get screwed.

It is comforting, especially to anxious first-time buyers, to meet us and see that we are professional and thorough, and not just the stereotypical greedy investors.

I suppose it gives an impression of someone who is a bit more like them than the stereotype of super wealthy landlords that many tenants seem  to believe. 

This tenant continued to be a perpetual complainer for another year or so, and sure enough, ended up as my first (and so far only) eviction ever.