If others in the area commonly have them, this is a significant ding.

There are other common pitfalls when it comes to hourly workers, where last years income was high however the average amount of hours worked over the last two years does not equal the amount of money they made last year.

Having been born in Russia, I have perspective that is not common on BiggerPockets.

Once your added to everyone's list then this is a scenario that could most definitely happen, but this is nothing new by a long shot.

I'm sure it had to do with something a little different than just that.But I could see where it would be real easy to game the system if the auctioneer was in on the deal with some of these other scenarios.

I'm trying to see what might be best in alternative scenarios.

Worst case scenario is that the tenant hires their friend in the the granite install business, enters into an inflated $7,000 contract to install granite, the installer installs cheap scrap pieces of granite, the tenant does not pay and the installer puts a $7,000 mechanics lien on your house, and you have no recourse against tenants since they do not have normal jobs and are deadbeats.

Someone approached me with their property situation. It is out of state. Payments are current. 3 bdr 2.5 bath. Has been vacant. Says could use some work and it is about $20,000 upside down. I'm curious how to structur...

We do have a lot in common, because my two properties are in 90004 and 90016.

It is only a matter of time before an expensive repair/replacement. 35% and the numbers look great, but I think that is a recipe for failure.The other problem is 4-plexes in my price range are not common.