Don't worry, yes, I had them sign a lease, a mold addendum, rules & regulations, and an addendum for drug-free housing.Complication #2- They moved out with prior notice (which is required, 30 days in advance of the 1st of the month), leaving behind TONS of possessions, and moved into a shelter.Complication #3- I was never given notice.

And it's because of the quality of the collateral as seen in point 5, which allows me to model their worst case situation. for example, if the market crashes tomorrow and we can't get out without catastrophic losses (unlikely since the property market isn't the stock market), what the worst case?

I agree with someone earlier, you have to remember who your talking about, Dave Ramsey is really more geared for a 'regular' employed person with no cash flowing business,,,,not someone that is a professional real estate investor that knows how to make money with debt.If I followed Ramsey's model I would own 1 house, all cash,,and cash flow about $800 a month,,,I own 5 properties with debt and cash flow about $2750 a month,,,which do you think is better (and have over 25% equity in each of them)

Apparently the house has been vacant for 3-4 years and the bank simply hasn't taken possession of the home.

We use 5% for our models.

Hello,I'm relatively new in real estate investing and positioning to build a "buy and hold" model.  

In many states possession will be the golden rule for ownership and enforcement.  

My model is to rehab then rent as opposed to flipping.

Which is really to say, they already sold it, they just didn't give up possession.

Therefore, the end result is that a lot of radio stations wouldn't be able to do talk radio because it would become a failed business model.