Recently I thought about only targeting people that I know have money like athletes and celebrities.

I would not rely too heavily on that as a mechanism for capital recovery in the event of default and foreclosure. 

A Mortgagee can only recover from the collateral provided the discount affords that recovery.  

I agree that The Trust Fund Recovery Penalties are not something you want to deal with.

My take is that it really depends on you business model and time frame (flip or buy and hold etc) You can make REAL money even in ARTIFICIAL recoveries.

The commercial cycle falls a few years behind in recovery versus residential.

Flooring over 5 years. etc.Here is a chart of such items.Type of PropertyGeneral Depreciation SystemComputers and their peripheral equipment5 yearsOffice machinery, such as: Typewriters Calculators Copiers5 yearsAutomobiles5 yearsLight trucks5 yearsAppliances, such as: Stoves Refrigerators5 yearsCarpets5 yearsFurniture used in rental property5 yearsOffice furniture and equipment, such as: Desks Files7 yearsAny property that does not have a class life and that has not been designated by law as being in any other class7 yearsRoads15 yearsShrubbery15 yearsFences15 yearsResidential rental property (buildings or structures) and structural components such as furnaces, waterpipes, venting, etc.27.5 yearsAdditions and improvements, such as a new roofThe same recovery period as that of the property to which the addition or improvement is made, determined as if the property were placed in service at the same time as the addition or improvement.Property taxes go on Schedule A.

Request documentation, call their insurance company, have a recovery plan.An approach we use at 2 of our client's properties is a non-refundable pet security + required renter's insurance on the pets.Best of luck.

What I meant to say is that is over 10x what is considered a high reading.They will both make a full recovery.

Get creative with some expense recovery.