UP-SIDE: If you pay $900 to evict and they move tomorrow, than you can start collecting rent on a new GOOD tenant that much sooner so it is not money wasted, you can still break even.DOWN-SIDE, you do nothing and they don't pay, then you still have to evict and then you loose another month or two of rent.

I would seek CPA advise on this if you want to make sure you are not taxed on the sale excess (boot).Good Investing...

For example, if your renters are making noise that any neighbor considers to be a "disturbance" (literally that's the word they use in the bill), the police will be called and if there are 3 verified disturbances, you will loose your ability to rent the STR for 2 years. 

Depending on the structure, we then have the Loss in Excess discussion or the Deemed Dividends discussion as well.Great post!

G'Day Hughston,The best advice I could give would be to not invest out of state unless you buy turnkey.But that's just me being biased.The second best advice I can give is to focus more on the people that you will be working with over the stats/demographics of a specific area.I'm sure that this has been covered many times in the various BP books but to this day it rings true.You will heavily have to rely on the folks on the ground.They will either make or brake your investment so choose them wisely.If you buy the best house, on the best street, in the best area with the best capital growth projections.But your property manager is incompetent or a cheat.You will loose money.So, team first, area second.Much success

Have an Agent quote Excess Liability.   

The criminal background check came up clear but I found out that the male tenant had case against him that caused him to loose his job at the school due to inappropriate behavior.

SBux has great real estate, but most of their deals are well in excess of market rents due to significant Work Letters for the developer on the front end.

When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or refund the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account designated explicitly for future investments.

The ground wire from the electrical box got loose and came in contact with the water pipe to the house so it was a hazardous situation.