I don't care how good of an investor onesie, there s nobody who can predict or control the future.nyou can have the best tenants until they experience a death in the family, a job loss, a medical issue, etc, etc, etc and wham, you now have a tenant that can't pay the rent so you lose money.

I made one exception and he has paid 1 late fee.  1 year ago he was hospitalized for a few weeks with serious medical problems. 

The subject came up when I was asking a friend if her medical student daughter knew of any other students/residents who were looking for housing.

My Wife and I both have disabilities, I work P.T. at Costco for medical benefits, and get partial disability income.

We've also invested in other stabilized cash-flowing asset classes (medical office being the next largest asset class).

Meaning after opening the HELOC for 10 years it will cease to be a HELOC.

Perhaps the bad credit is from medical bills but he pays everything else promptly.

Since she is on Medicaid, if she sells the house she would be liable for back charges she has incurred plus all future medical expenses; that is IF she would get approved since she would have to reapply once her current coverage is dropped.

In the case of the late rent, you MUST hit them with a notice to cease immediately, even if paid.

But I'd be lying to you if I told you it didn't make me nervous every time they pay late, as they are one car repair/medical expense/whatever from not paying at all.