Under the land contract, which can be recorded by the way, we have equitable interest in the property.If he gets sued and the plaintiff wins, 2-3 things can prevent us losing the property:1.

Often times business owners and real estate investors get caught up in the things that they have no control over (losing a deal, the weather, etc) which causes a lack of focus which can lead to poor results.

Also, in a mainstream asset class like value-added multifamily, I see no reason to take a risk on a sponsor that doesn't have full real estate cycle experience and didn't lose money.

Instead of losing the funds I think an option would be to lower the sales price to reflect the seller contributions that would be lost and lower the seller paid closing cost to the allowable 3%.

He will likely lose all of his current residents unless the place is nearby and of similar condition.

Like you, I figured that having the cash flow up front to re-invest rather than waiting to cash out down the road was a better choice for my goals, so I don’t mind losing the principal pay down for the higher cash flow in the beginning.

I would argue that it's a lot cheaper than losing my backside in a couple of deals.There is a lots of advice that is freely given here on BP.

What I lose money etc etc. kinda scary?

If they truly want it, they will pay quickly as to not lose the chance of moving into the unit.

You need to actually collect it.Not only does it fail to incentivize them to pay on time if they never have to actually pay the late fee, but in some states (like mine) you actually could lose the ability to charge a late fee if you don’t enforce it because your failure to collect it could be seen as a waiver of that term of the lease.On a side note, I personally wouldn’t have renewed their lease.