Each property now has a fund that will cover major repairs, appliance replacement, natural catastrophes & vacancies.Keep in mind, my properties are 100+ tears old; I MUST stay on top of routine upkeep/repairs.

Here is what I have so far:At any time before, during, after investment:I or any of my team unexpectedly dies, becomes seriously ill, or injuredAn impassable disagreement occurs between any 2 parties of the investment teamA member of the investment team fails(for any reason) to uphold their agreementBefore purchase:Incorrect property valuationInability to secure financing after earnestDuring Financing and purchase:Loan executor fails to follow through with the loan.Loan executor misleads or baits me with incorrect terms and conditionsSeller withdraws contractSeller tries to renegotiate contractSeller withdraws agreement to carry loanTitle issuesDuring rehabilitation:Cost overrun - If the cost to complete a rehab exceeds the estimated cost budgeted.Time overrun - If the allotted time to complete a rehab is exceededUnforseen issues - if issues arise due to unknown/hidden problems, termite damage, mold, etcProblematic Contractors - Contractors that want to increase the bid midway through the job, fail to pay their employees, don’t show up when scheduled, fail to consistently clean, low or no skill, do poor work, fail to carry proper insurance, do not use agreed upon materials and/or finishes, use the “you can’t see it from my house” methodology, dress and/or act not in accordance with accepted job site standards, live or sleep at the job site, steal materials, supplies, and/or tools, attempt to undermine my relationship with my real estate team including agents, investors, other contractors, clients or potential clients, places lien or sues, dies or is seriously injured during project, experiences major life event that prevents or hinders their ability to continue, contractor or their employee dies or is seriously injured on the property, gets OSHA or other governing body violation(s)Code Violations - Red flagged for failing to obtain proper building and/or work permits prior to beginning project, overgrown vegetation, etcProblems Specific to Rental Properties:Tenant does not pay rent or pays lateTenant does not pay utilities/trash serviceTenant causes damage to propertyTenant does not take care of maintenance and/or cleaning of propertyTenant smokes or has pets when these things are not allowedTenant makes unauthorized changes to the property, ie painting walls, removing landscaping.Tenant allows others to move in without adding them to the leaseTenant misused the property, ie drug lab, melting plastic in the oven, spray paint graffiti on shed, parks in unauthorized zones such as the grassSomeone injures themself while on propertyHouse fire, floods, other natural disasterMajor maintenance issues such as roof replacement, appliance malfunction, plumbing leak, etcTenant violates city code, ie noise ordinances, trash and debris in yard, etcUnavoidable costs such as normal wear and tear include failing appliances, scratched/scuffed wood floors, dirty paint, worn carpet, etc.After rehab:Property does not appraise and/or sell/rent for expected ARVInterest rates go higher than expectedProperty tax increaseStricter laws are put in place that prevent finance/refinanceThis is all that I could come up with.

Im sure if i spent the last decade really honing it, i could be tearing it up but its not for me nor do i have any desire.  

For instance having to select from a tenant base of mainly Greasy boots Gary's who work in a factory and might SECRETLY roll their Harley's into the living room to tear down and rebuild the engines might call for a larger deposit, than having to select from a tenant base of retired maids....regarding wear and tear and "Filth"....meaning the average might not be enough if your unit is drawing a tenant type that is HARD on the unit.On the other hand if your unit is having trouble drawing tenants, MAYBE lowing the security below the average for competitors might work.And it's always smart to check references and try to get those who you think will take good care of the place, vs trashing it.Just my 2 cents.

@Nathan G.Yeah My 200 dollar ozone has save me thousands in carpet replacement maybe 10s of thousands if you figured lost rent down time due to not having to tear out or repaint a unit.

And no, I have no interest in investing elsewhere right now.There are downsides to renting by the room:a) you carry the utilities;b) As Dawn mentioned, you end-up dealing with roommate drama as each roomer has a relationship with you and not with each other.c) Wear and tear on your property will be greater and it's more challenging to hold someone accountable for damages, especially to common areas or chattel.  

Either party may terminate the month-to-month Renewal Term at the end of any rental month, provided that written notice of not less than thirty (30) days is given to the other party prior to the last day of the desired final rental month of the tenancy.TENANT'S RESPONSIBILITY AT END OF TERM: Tenant agrees to surrender the Property to Landlord at the end of the Initial Term, or any renewal thereof, in the same condition as when received, ordinary wear and tear excepted.

In order to reduce the amount of turnover on cleaning, wear 'n tear on laundry, etc., I set to a min. of 30 days and have had several consecutive 2-3 mos. guests. 

Unfortunately, our inspection suggested some minor structural damage, but we've since come to find out that we'll likely need to tear the structure down and completely start from scratch. 

Folks don't generally spend big bucks to tear a house up.