Will it only be discovered during an audit or are there some other checks and balances in place?

We used one of those legal websites and here is the language we used with repayment specific to our situation.Loan AgreementDated: __________FOR VALUE RECEIVED, the undersigned, NAMES (the "Borrower"), located at ADDRESS, hereby promises to pay to the order of NAMES, (the "Lender"), located at ADDRESS, the principal sum of $XXXX together with annual interest of X% on the principal balance, and in accordance with the terms set forth below.Payment.

If they don't foreclose it could sit for years on their balance sheet until they sell it in a pool of distressed debt. 

http://wfpl.org/the-future-of-floyds-fork-louisvil...I frequently kayak and kayak fish at Floyd's Fork. There is a lot of land available and the area and I've always thought it was a matter of time before you saw more...

I knew I would see the tenant at moveout and wanted to discuss how he would pay the past due water balance of about $600, knowing this was a sore point.

Since you’re not looking for budgeting, the “accounting” version of what you’re asking for is a balance sheet.You can always go the “free” route and make your own.

Having not invested in this market yet it is difficult to know the true expenses per unit.

In my experience, a foreclosure auction does not sell for less than what the mortgage balance is.

The risk is very small from what is seen and I fear that in those cases it is not difficult for a lawyer to pierce the vail due to most possibly being poorly set up.Assuming one is a competent landlord investor and their property is properly maintained there is little risk aside from frivolous suits and investors in highly litigious states where the courts support ridiculous law suits.

Unless you know those pockets, it is difficult to generalize an entire neighborhood.