Wishing you and yours a very happy, healthy, and productive 2014.@ Darren: Good to know about the meetups.@ Ali: I chose Dekalb County because I have some acquaintances down there.

What might be insured is between the insurance carrier and the lender.Considerations are vast, the local economy, the project, management, financials, timing of the project to completion, basically all areas that a lender will consider.As to sub-prime, never heard of it, as coverage is generally afforded to strong borrowers, developers that are entering a project at a higher LTV initially and the LTV is reduced as a project comes to completion, the initial risk.Apartments or properties held long term can be insured but again usually to cover the LTV risk, that is risk enough and to add sub-prime credit, management, or low debt coverage issues really isn't an insurable risk.

People who can afford $1500 in rent without issue generally (not always) can afford their own home for less in my area.

The LLC will afford some liability protection but you should also look to a good insurance policy to carry the brunt of that protection.

But he did allow me to see BOTH sets of books to ensure he was viable & could afford my NNN.

And maybe values back then were lower than what the bank was hoping for, so rents made it affordable for the bank to hold until values recovered.

A couple things from my perspective: TX is a very low barrier to development state especially compared to CA and even the geography is wide open so the danger is that developers will just move a mile down the road and build new product to compete with yours if good employment is headed that way.

Make sure you don't by an expensive software program to do this.There are products sold based on saving mortgage payers thousands of dollars.All you have to do is what Steve said above...and it is free!

We then carefully renovate and tastefully update them to provide affordable housing and revitalize neighborhoods.

@Ali Boone invests in other states with more affordable prices than California, maybe she can weigh in, as well as @Marco Santarelli