I have always felt like I knew enough to be dangerous...always had gaps in my knowledge base that gave me pause.

The other side is a less than desirable neighborhood, but not a dangerous one.

Legally, however they are all distinct entities protected from each other. 

I do want to make the distinction that the expectations here is the loan is with a Servicer in their high touch default servicing program and you are probably paying around $75 or $100 per month.  

This can be more dangerous for you if you do not have any experience investing in commercial.  

In danger of losing two of the properties to the city (wish to keep)The investor is seeking to either sell two properties or find alternative finance.

Those guys are one extreme or the other - experienced and pricey or inexperienced and dangerous.  

Good suggestion though. 2) The $1000 figure was from the previous owner (who pays for everything at the property ... amazing deal and dangerous, I know) giving ballpark figures of his previous costs (Per year: insurance $2k, taxes $4k, internet $1k, water $1k, gas $1.5k, hydro $2k (total $12k)). 3) Good points.

Buying for appreciation always seems like a dangerous game.

This could be dangerous for you long term.