I recently had a client in this same position.

Every real estate agent I know (all over the country) is down on sales, things are selling much slower, and just not as much action as has been for the last few years.

Which UCC form do I need to file in order to get first position on the property?

It puts me in a much stronger position if any legal challenge ever arises, though some might argue that it's overkill.

Should I be in first lien position?

Some surprises I've had in this area:Sheriff kicked door down in one house b/c they had a warrant from a previous tenantFound a gun in one house (ended up being a BB gun but looked like a 357 revolver)Had tenants leave the house, left all their stuff, and never heard from them again, after living there for only a few monthsHad a water leak in a ceiling that flooded my garage and damaged ceiling in dining areaOn the positive side, have provide safe, affordable, clean housing for some great people.

I get depreciation, principal pay down, positive cash flow of usually about $500 or more per month per property, and the Tenant Buyer maintains the property (so, no toilets to worry about ;-).

I'd feel better if you had at least $200-$300 in positive cash flow, just in case the market goes sideways and rents retreat.

As a first actionable step, I'd like to echo @Matt Crusinberry 's advice, read Scott Trenches book Set For Life.

Alex,We find that motivated seller's are often not in the position to pay closing costs anyway.