This guarantor, who may be an individual or another entity, will be responsible for the difference between what is owed to the lender to make them whole and what has been recovered.If the lender makes the loan to an individual (natural person), this person is implicitly the guarantor via the note, and no separate guarantee is needed.

More work with more risk but can get you going if limited funds until growing into bigger deals.I am still on this site but stay very busy so not on here as much. 

If you live below your means you should be able to save enough for this. 

@Jonathan Greene, @Peter Mckernan, @Zachary DealThank you all for your insights this is super helpful and I appreciate the responses.

Quote from @Galant Ant: This cane happen really anywhere..

Is this a common trend? 

We will be renting our current property when we buy this new property to use as our new primary residence.

I am told that foundation problems are common in this part of Austin.

In this scenario, we would spray for the pests and then charge the tenant.

What made you interested in investing in this type of deal?