I have seen on my last trip to New York City formerly bankrupt hotels recover and make a ton of revenue off illegal immigrants.

As a retired CPA, I have seen more than my share of bankrupted RE investors who were over leveraged with many properties.All the more reason to emphasize developing good due diligence practices, having some skin in the game and staying on top of legal requirements, maintenance, finance and tenant screening criteria.

There were a lot of bankrupt arbitragers over the last 2 years.

All of my rentals are stuck using Louisiana Citizens Insurance (state sponsored and 3x what I was paying before the insurance companies all either pulled out or went bankrupt). 

Louisville MSD just increased rates 7% again and this year we are averaging $700/month between water+sewer bill which has basically bankrupt the association as all prior years were budgeted for half of this.

The company can just go bankrupt and not pay you anything.

I doubt the companies you mentioned above (both good) probably would not go to that extent, but they could.I have had borrowers or lenders (buyers and sellers) die, get divorced, go bankrupt, default under every loan provision, become incapacitated and even go to prison!

It’s basically bankrupt and there’s no respect for the rule of law.

The people got houses, they didn’t maintain them, they went bankrupt, later they couldn’t buy a house.  

Most are forced into settling or go bankrupt fighting and did nothing.