By screening applications and selecting people with secure jobs, good income, and good credit, you will reduce the risk a ton.I manage 340 rentals and less than 1% of them ever leave owing more than I have on deposit.

@Chris Bisaillon of all the national lenders I've seen investors work with Aaron Chapman with Security National Mortgage Company has the most competitive rates and actually meets timelines.

If it hasn't redeemed in the allotted timeline you can either walk away and cut your losses or proceed with foreclosure to secure your investment.  

Navy FCU was not offering a HELOC secured against an investment property (i.e. non-owner occupied), neither Wells Fargo nor the several small credit unions I called were "doing investment HELOCS right now".Details:  3/2 SFR.  

Hard Money - I was told by the real state agent that he can assist with lining up hard money lenders to at least 'secure' the deal.

In my 40 years plus in this business I have one blemish and that was when my securities attorney told me I was fine.. and the State said I was not.. they argued .. and unless I wanted to spend 100 to 200k going to law review court..

Another example is an elderly tenant in one of my units who lives on a fixed income, social security.

Use a credit card, or get a secured credit card to build your credit. 

Idea would be to restructure terms and give a 2 year extension of I/O payments for the borrower in hopes he could secure financing.

Hello everyone, My roommates and I have run into a slight conundrum regarding our security deposit at a rental we just moved out of in Atlanta, Georgia.