Not much you can do about future special assessments though.Melissa Bailey-Comstock Based on the home values it does appear to be in a sweet spot for flipping, and there are a few foreclosures in the area posted for auction soon. 

Let him know that if he doesn't come up with the deposit, and co-signer within 5 days you will file for eviction which will ruin his credit rating and ability to rent in the future.

In future, there might be some complication if you conduct both activities under same LLC. 

@Paul BergagnaWelcome to BP, and congratulations on making the decision to invest in your future via real estate.I have written a few blog posts that may help you get started here on BP, and with your investing.

@Paige Roberts I would modify your lease to prevent this in the future.

We want to eventually move to SA, so we plan in buy more properties in the future.

What I find is that some REs don't see or observe details such as a creepy alley next to the house or a sunken garage that may lead to future flooding issues, for instance. 2.)

If your CPA does endorse an S-corp, make sure to ask him about changing your business practices to comply with S-corp rules.When doing distributions, remember to leave enough money in the company account for future expenses, including paying the CPA.If you're planning to dissolve the company, I recommend prepaying the CPA before dissolving.

I'm currently consuming all things REI - books, blogs, podcasts, etc. in hopes of gaining the knowledge to make an exciting and financially independent future for myself and my wife.

Look at is probability of sustaining a loss that exceeds the levels of coverage.