For me, I am mostly concerned with major issues like the roof, furnace, structure, etc.

The majority of the residents were students in the college there.

At least then I would not have to worry about what the next major repair will be and what it will cost me.

While I agree that the probability for something truly major to happen isn't high, it may happen.

For the most part the US is still a declining market and at 100% on what is likely majority investment properties, the lender would have no insulation against any value deterioration in the market.Under that same concept, I would presume many victims suffer from self-inflicted wounds.

Peter Haymond - I know this post is from a few weeks back, but I just came across at the bottom of another thread and I wanted to add a major point that may have been missed.

Some of them try to sell them, some others try to rent them or even donate it, but the vast majority does it with no success:

An image jumped into my head of 'For Rent' signs down the whole street and I knew that wasn't something I wanted to compete with.I prefer to buy in established neighborhoods where the majority of people own their houses.

Their credit (unless it can attach liens to the property) is not a major concern to me.For example the wife & I go to our local tax or property auctions & sit there with the bidders (after we have est a good price for a home based on its condition etc).

Flood insurance requirements are based on FEMA flood maps, and it's up to FEMA (and the local water management departments) to determine if and how the maps are to be changed.We had some major flooding in my area back in 2009 and the results were that some of the flooded areas got reclassified into flood zones that required insurance and some did not.