One bad tenant or an unexpected roof leak can decimate your return.2) The biggest determinate of an investment's success is property manager (also referred to as operator).

Obviously, they dont want to lose money, and wont lend on a bad deal, so I do my analysis, get my numbers, and then compare it to theirs after they do their analysis.

Nothing bad.

Dropping the rents $100 a unit would still cash flow $200/door with the tenants paying utilities.Numbers at a glance:Gross Income- 22260Taxes- 2084Insurance- 1000Management- 2226Utilities- 9500NOI- 7450 assuming no vacancy or CAPEX (just to illustrate how bad the current numbers are)Debt Service- 6535 (30yr, 20% down, 5.5%)Annual Cash Flow- 915 (Actual for this year with my debt service is -4797 due to CAPEX and no vacancy).

When we fund deals that are riskier because the borrower has bad credit or has never flipped a house we are taking on more risk. so we will want that borrower using our system.

Lots of better and easier to install flooring choices now than then!

is it bad? 

The trouble with bad agents is that they don't realize they're bad, and they're the ones who would make a stink about something like that... 

Depending on the class of tenant, you may need to up your vacancy percentage and you may have some "bad debt" (rent that is never paid). 

But LLCs are a better choice than S-corps if you decide to get one.