The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it.We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

Reality is that these rates we have had the last couple of years were historically low.  

He will need to take a reverse mortgage or face the reality of his situation. 

You asked about the risks and benefits of using leverage in real estate investing.The reality is leverage cannot be avoided, usually, in real estate investing.The risks are you get over-leveraged and your don't have enough cashflow and reserves to weather a market shift, extended vacancy, or major repair.The advantage is you increase your ROI by using other people's money and as little of your own money as possible.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

Now a good point though when their deals dont work do they change their lifestyle to accommodate the new reality ..

I say them so that you can be better prepared to deal with reality.

Sadly, banks and hard money lenders are painful to work with in this model as needing to have clear title while they underwrite is not reality.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

The reality is there's literally no better way to do that than with real estate investment.