When visiting the under paying resident, see what they can tolerate for an increase.

I will first say that I am a conservative investor, so someone coming from a different risk tolerance will feel very differently.I believe that we are late in the cycle and as a conservative investor I care much more about preservation of principal than projected return.Sponsors that got their start after 2009, have only experienced the sunshine of economic expansion when it is very easy to make money if someone is only halfway competent.

It depends on your risk tolerance, but there are certainly plenty of those lower price point properties available that you could purchase.

What he chooses should be a function of his risk tolerance, time frame, goals, etc... not based on what we say here.

Hi Matthew,I think it depends on your analysis of the market and your own risk tolerance.

You need to inform your tenant that late payments will not be tolerated and late fees will be enforced.

But for a rental this can be tolerated as long as the hard money loan can be REFIed out into a 30yr perm financing and get by the appraisal.  

To piggy back a bit on what @Ned Carey is suggesting in deciding the kind of property you want then locating the area...also deciding on your personal risk tolerance is important too.  

Well I admit that maybe because she felt that I was accusing her that's why she became angry, but I could not tolerant someone who cannot have a civil conversation.

What is your risk tolerance?