Three good steps are to 1) buy for cash flow, not appreciation, 2) secure debt that is longer in term than your projected hold period, 3) have adequate upfront reserves.

Lower income people absolutely deserve safe, secure homes, but from an investor's perspective, the risk of non-payment, eviction, squatting, and general turnover is simply higher with a lower-income tenant pool.

The seller gets to have some kind of return on his money instead of putting it in the bank, his money will be secured by the property so if I default, he can take it back, he gets a check in the mail each month during retirement, and I don't have to move into a 1 bd/ 1 ba unit with my family.

We decided not to enter into a lease with her but wanted to know if we must return all, part or none of her Security deposit?

Thank God for what you have and invest to secure your family's future... don't do this so you can blow your money on top dollar worthless items.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

However, I've never done a rooming house before and wanted to know the best way to handle security deposits and how they may be applied to damages in the future.

However, I've never done a rooming house before and wanted to know the best way to handle security deposits and how they may be applied to damages in the future.

This was negotiated as part of a 4 home package.

No evictions but one left my house in such a bad shape that even after security deposit still owed thousands.