A market correction doesn't scare me in the slightest because I invest correctly from day one, with built in equity and cashflow so that I can easily survive during the down years, and thrive during the up years. 

He has 2 surviving kin, one of which is institutionalized, and I'm fairly certain his (middle aged) daughter will want to sell.What makes this a possibly great opportunity is the fact that he was the first owner of the home, built in the late 50s early 60s, and owns the property free and clear!

If you survive through the entire 69 page Zimmerman/Volk report let me know. 

One thing is for sure, if we learn to survive in the new lead paint regime we shall dominate our areas...few investors will have the stomach for this.Andrew 

Then once you are out of acquisition mode and have the 8-15 units you want you can start paying them down.

They MUST do that to survive.

He has 2 surviving kin, one of which is institutionalized, and I'm fairly certain his (middle aged) daughter will want to sell.What makes this a possibly great opportunity is the fact that he was the first owner of the home, built in the late 50s early 60s, and owns the property free and clear!

Challenges could include:Having the population to make it a sustainable day-to-day venture.Finding quality staff is tough these days, don't care what you pay them.Breakdowns/serviceInclement weatherPennies on the dollar at exit If the truck does say, 1000 bucks and after labor/cost of goods the operator's left with 500 - 600, then has commissary expenses and a possible split with a partner(s)Ehhhhh...burnout.There were dozens of trucks here 5 years ago and only a handful have really survived the grind. 

Our model is we purchase and rehab with our own money or private money, then with a lease in place we refinance with a medium sized regional bank.

I've been through 4 PM's and they all have the same problems.1. the managers have WAY too many properties assigned to them so they are always in triage mode and the other stuff (like finding tenants, communicating with landlords, collecting rent, and everything else you pay them for) falls to the wayside. 2. most PM's have never owned a property. now, I know this is hard to ask for from all PM's but if you're a small investor like I am then I think it's imperative to have a PM on your side the really knows the market, and what's at stake.