At that time, home prices took a nose dive and remained at a new lower level until the next disruption.

Sure, the lender may not know, but if they specifically told you, "We will make the loan only to you, not a business entity," and then you thumb your nose at them and transfer the title to the property (and they find out about it), I predict a bumpy, unhappy, and short-lived relationship.You should be able to put the collateral into a business entity and then either do a personal guaranty for the business borrower, or, for an even more "belt-and-suspenders" approach, be a co-borrower alongside the business.As for your personal liability risks (non-debt related), you can cover most of those with insurance.

Paul is right on the nose.

Condos are not for me - but here's some other threads you might want to read:http://www.biggerpockets.com/forums/88/topics/53838-my-first-serious-deal-9-condo-package-analysis-advicehttp://www.biggerpockets.com/forums/97/topics/49218-reo-fractured-condo-building-st-pete-fl-areahttp://www.biggerpockets.com/forums/52/topics/50460-types-of-homes-for-rentals

This is why I avoid houses with a lot of unpermitted work, unless it can be easily cleared up on the phone with the inspector...having said that a lot of people don't seem to mind these additions, and see having the extra room(s) as an advantage.Vicky if you don't already have one, you should try to find a very hard-nosed home inspector in your area for your next REO.

I have seen many Realtors spend money banking on a closing and end up in debt.Not saying that someone might pass away and the little old lady agrees to allow you to do a lease option with a promise as an option price, but spending time looking for her is going to be, IMO, in the end, a waste of valuable time where you could be making money.A seller will ask to see your ability to perform under a contract, the bigger the deal, the more hard nose they will be.

If they don't like it oh well no skin off my nose.

Some people will not accept the fact that the early bird gets the worm and they will cut off their nose to spite their face.

Chances are this loser needs to keep his nose clean or face returning to his former accomodations.Keep us posted how things work out.

Also, most of them can come up with the rent, if the landlord is hard nosed about it.