They say these people should usually be someone in your own circle of known associates or even personal friends or a family member but in reality many have actually become professional lenders all the same.

And I'd have to find other IRS write-offs to cover the annual rental profits.Some complicating variables to note: Since it's a beach house, the value has spiked far faster than the estimated worth of the other homes, a reality that surely will continue, since the coastline is shrinking, not growing.

@Chris Mason  I would never tell some one to break a loan covenant but this one is over the top.. and reality is who is out there to enforce this.. a year goes by pretty quick..  

In reality, it isn't. 

the reality of people in foreclose based on my experience is they don't get serious until 24 to 48 hours before the sale. 

@Nicole Heasley I couldn't agree more with the reality of the problem you're bringing to light here, but being a CA investor, property provider, and acting as a consultant for a ton of other CA investors looking to go out of state I see the problem from a different angle.The investors themselves are not the problem.

It would definatly get their pie in the sky ideas back down to reality and teach them what this business is really about..  

Reality is that not 1 in 100 tenants gives a rats *** about their landlord.

In reality, I think you're going about this the right way and with the right mindset.

It’s becoming a common theme of “this building has a potential for $X a month” when in reality it hasn’t had a tenant in it for over a year due to rehab, foreclosure etc.