The more you make the more you pay but as long  as you are making money you still win.

You win because you at least start collecting something and you look like a nice guy and they win because for now, they're no longer "late" and owe the late fees.Edited to correct my math and to say it looks like the previous poster just beat me to my idea!

In my experience one thing I have absolutely found to be true is that sometimes in these areas you need to 'win' over your tenants.

And he will do the fix up himself.. so it should be a win win..And  I get to add yet another note to my passive note collection..

And yes one can (and I do) run numbers modeling that but we then run into the problem you so eloquently elucidate upon in your "I NEVER" post above: That the future is unknowable, the best we can realistically predict is a range of probabilities, and anything more than that is pure rationalization.Which brings me to an interesting question Denise: If we locked your future is unknowable view from your post above with the I can predict future incomes from your post before it in a room who would win?

You may want to try a preferred dividend with a 50% of profits clause to allow you to get better terms if its a big win and protect him to get all or most of the winnings if its not that good of a deal in the end.

If you win more than you lose then overall the portfolio and gains are positive over time.    

I did get a college degree that emphasized real estate.  

At the very least, you have boots on the ground to check out a property if you get into a pinch.That being said, not everybody can or wants to pick up and move to Florida.I can't remember where I heard this, but someone suggested that you should invest w/in 2 hours of where you live, including flights and time that it takes to travel to the airport.

You should also emphasize this in the lease, that they are all jointly responsible for any damages that occur.