@Scott PassmanHi Scott,I have been doing some digging in regards to why there is so much homeless, or so it seems.Here is one Study:https://www.innovations.harvard.edu/sites/default/files/hpd_0203_wright.pdfIt's an interesting Read.It points out that there is a history of declining affordable housing areas that used to be there, called "Skid Row."

@Ani KapMany lenders have rate bumps for loans under $100k, and for non owner occupied properties.The rates are not based on making profit, but have more to do with risk.Loans under $100k default more often than loans over $100k, and similarly non owner occupied properties default more often than owner occupied.Your fixed loan costs like underwriting (usually around $900-$1,000) and appraisal (usually $500-600) will remain unchanged regardless of loan size, however at lower loan amounts, they seem more expensive...

(As far as I can tell, pretty much all of the insurance companies around here switched to ACV for roofs by default between about 3 and 5 years ago; my residence switched around that time. 

The repayment terms for a 401k participant loan are equal monthly/quarterly payments of principal and interest (typically prime plus 1%) over a 5 year term (longer if used to acquire your principal residence).Please note that if you take a full $50,000 and then pay back the loan, you can't take another $50,000 until 12 months after the first loan was fully paid back.Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).

He then went on to tell me immediately about all those people that went default about 10 years ago and how I should worry about being over extended.

I did a contract for deed on a trailer house in a park,  I put in the contract very simply that failure to pay the lot rent is the same as defaulting on the loan.

(i.e. if the borrower was to default)What i found particularly appealing about the BRRRR method was the "velocity of money" or the fact that I could repeat this process several times and quickly. 

One concern is if this "income" is collectable - if she defaults and you evict and then try to collect on the balance due, will your state allow you to garnish that amount as if it were normal income, or is it exempt?

@Nikki Closser in a seller finance situation, the seller has a chance to earn a return/interest on the payments from the buyer while maintaining a position if said buyer defaults.

One thing to note is the larger than typical spike in default notices last month.