It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

The transaction is insured via E&O.

Nat,Tenant has been unemployed since March and has been receiving unemployment insurance.

Many stockbrokers and insurance salesmen are not fiduciaries. 

The loan is listed on the HUD and they provide lender's title insurance.   

It’s standard practice and an essential safeguard for landlords.Trust your instincts and treat this as a non-negotiable policy.

I'm thinking of selling my personal residence on a wrap, but I wanted to see what you thought about these approximate numbers (rounded for simplicity):$140k sales price$30k down payment from buyer$95k owed on my existing mortgage @ 4.875%$550 P&I monthly payment ($650 w/ taxes and insurance)Seller finance the $110k left w/ a wrap w/ a 3 year balloon.

And a debt note is only part of the cost of owning a property; not paying taxes will get a property foreclosed; not paying insurance can present huge exposure to damages.

What kinds of policies do you think might help ensure ongoing affordability as Texas continues to grow?

Taxes and insurance will be another $400+.