That seems extremely dangerous. 

It's a great theory, and when it's done right it can be great, but the danger in that method is that you're the one carrying all the risk, and relying on the company to perform.

That's the danger of leverage.

The whole thing sounds fishy as mentioned...I know that in some states you must have "scienter" (knowledge that dog is dangerous due to previous bite, etc.) to be liable.

Try to change the rent contract from $6k installment to 4x $1,5k each month, payable at 3rd, 10th, 17th and 24th of each month.If he cannot supply your own business can be dangerous so no I wouldn't serve him a line of credit.

A few months later, it turns out that there were giant dangerous gas deposits below the project and all sorts of other potential problems.

I focus on neighborhoods on the outskirts of the city that are less dangerous and strive for the 2% rule.Financial Profile:Software engineer day jobNear 800 creditPrimary residence$230k loan, $60k equity$1600 month mortgage$1200 month roommate incomeSingle investment property$950 month rental income$250 month cash flow after mortgage and management fees$30k loan, $60k equity$100k Retirement account$30k personal cashDeal:Investor seller (moving out of area)12 homes fitting my profile in single neighborhood100% occupancy, 75% section 8each rent $1000-$1100 a monthasking $60k each, neighborhood retail is $40k-$70k depending on conditionSeller is introducing me to his portfolio lenderSeller is offering second lean to help qualify the loanConcerns: I will be meeting with the seller and his lender on Monday.

Reading this forum makes me realize that I know enough to just be dangerous, never would have expected a vet like you to congratulate my post.

(And the people who rent those types of places will expect you to go crazy bringing it back to near-new condition in between tenants.)I think the real trick is finding an area that isn't super gentrified - I hope I am using the term correctly - but yet isn't a horribly dangerous, sketchy neighborhood.

After meeting the seller she likely posted while on some illegal substance.