He reckons it was the first time he ever remembered wondering how a life could have negative value.If a life could have a negative value, it serves to reason a property could as well.

Poorvu and Jeffrey L.

They may shape up for a bit while they figure out who you are but they are likely to get right back in the red and it may come quicker than you think.If they are not 100% by the time you close, I would collect their first month's rent (make sure it's good) and then serve them notice to vacate.It's common for new Landlords to say, "I don't care if they're bad tenants because I'm getting such a good deal!"

Thanks @Taylor L.

You think that is best way to serve my time if I value my time at $500 hr or above?

@Lacey We have a great CPA in Mesa that serves a number of our landlords very well.

@Simon L.

I have tried to think of an appropriate hedge for this, and come up with the idea of serving two markets on a state line (think Portland Oregon and Vancouver Washington, for instance).

Having enough cash whether real cash or loc to buy 3-4 homes in my area or to serve as a down payment and rehab money for a $1 mill multi fam is huge.

When my bank asks for a current rent roll or P and L...I can send it right away.