I could classify ALL Hard money Lenders as crooks and thieves for charging excessive points and very high rates and I'm sure I can find some news article outlining this happens all the time. 

I'd prefer to be the one benefiting from all aspects of the property.Now if you're a high income individual but your time is short, I can certainly see putting that excess money to work for yourself by using it to continually buy turn-key properties.

I tend to see when investors buy properties, that first year is a favorable tax outcome due to stabilization costs and depreciation in excess of the principal paydown.Additionally, I happen to be a local CPA in Davenport and do specialize in real estate.

Then a single family came up and I went for that (the ink barely dried on the duplex closing).

Put any excess in savings each month and save for a down payment instead of giving it to the landlord to hold. 

A few I know of insist the sponsor have a net worth in excess of $5 million.

This thread has pretty well dried up, but for anyone interested I will share a quick follow up. 

@Lynette Guy Yikes, sounds like a major hassle...Legal action probably doesn't make sense, unless we're talking about a disputed amount in excess of $10K.

She came to me and said there was something wrong with the electric ,it was more than what the previous tenant was paying .I asked her if she used the oven , did laundry , blow dry her long hair , and kept the thermostat set to 70 degrees .  

When the rain lets up and the ditches dry, that project will be moving forward.