We can see that happening right now.If we are in the game for the long haul, it makes sense to mitigate risk by investing in cashflow properties.  

Coming from your previous occupation as a poker player should give you some great skills in analyzing and mitigating risk. 

This is such a dangerous play please please do not recommend this to one of your students.  

Air-born asbestos is very dangerous/ toxic and its not safe to have people in the home while this work is being done. 

Also what is their mitigation for selling.

Even if you borrowed from your Aunt Edna, you will lose money (and why would you ask her to be in as dangerous a position as this).  

Foreclose then it becomes a different matter.Depending on the size of the loaning institution, I call and get a name of a person in loss mitigation and send them a registered letter with a copy of the foreclosure with a note asking if we can work together on the matter.

Serve a 24 hour notice periodically and inspect everything, looking for signs that they are only smoking and not growing or selling on the premises, which could really cause damage or bring a dangerous element to your property. 

Thanks for opening my eyes to the dangers.

I do a lot of rehabs / flips as my "job" and have learned to mitigate the risks in this business as most experienced rehabbers will learn over the years.