Aside from that, you want to have replacement cost and sufficient Personal Liability coverage. 

In other words, each property must be self sufficient. 

With non performing notes that are liquidated via foreclosure, the lender recovers 100% of their advances when there is sufficient equity in the property.

It's choice and far too little is noticed how yes, the vast majority of people in the U.S. are law abiding decent people BY CHOICE. 

The vast majority (like99.99%) (if not all) mangers collect the rent then deduct their fee and any expenses for the month and send you a report and your funds or an invoice if you owe them money.In addition, how will the manager know if the tenant paid and when they paid you? 

To the group:  As more and more "deals" cross my desk and I perform underwriting, I find that the vast majority of these deals are simply overpriced offerings - even in lousy locations, Cap Rates are around 3-4%. 

Some other info:Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That OOS property Class rankings are usually vastly different than the local market they live in.7) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.9) Class B usually also okay, but needs more attention from owner and/or PMC10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That OOS property Class rankings are usually vastly different than the local market they live in.7) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.9) Class B usually also okay, but needs more attention from owner and/or PMC10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

Yes there are people who will think that way but unless you make it a point to rent to shady or ignorant people, the vast majority of people are going to think of a small gift as a nice little gesture. a small landlord is going to be viewed usually as someone who likely has a mortgage and not someone just raking in profit for nothing.

My lawyer believes the mortgage should be sufficient collateral since we are putting money down and will be putting more than $245k into the property in reno.My lawyer is obviously looking to protect me but I do believe on occasion this could be at the detriment of a deal.Has anyone ever done seller financing without a guarantee?