I have paid a house off and sold another non-performer to stay below the 10 loan limit.

Sell on a Lease plus Option, use separate documents, no rent credits, no performance tied to either document.3.

Finally, not that it's a huge deal for you because its not yours, they perform very well.

The second is that there are a lot of soft costs that should be tracked, even if you are performing the function yourself for 'free': Financing cost, marketing, sales, overhead and of course profit.

For example if a rehabber is asking you for a zero-down loan and you have already done 10 deals in the past with him and he's always performed (even on the really gnarly rehabs), does asking for zero-down means he is going to quit and that the deal is bad?

How do other rental property owners perform background checks and what other checks do you perform?

If there's a second involved, it gets much messier, and much more likely they will have to spend money on legal fees to deal with a default.If the borrowor can't swing the deal with their own money and the money from the HML, they shouldn't be doing the deal.If this is someone you trust to perform, offer to partner with them.

That is why it is critical to have people where you want to purchase with great knowledge of the area top advise on what the opportunity looks like.Of course you need to see the property and perform due diligence but some sellers and listing brokers on the commercial side will not even put anything under contract until the outside investor has seen the area.

Great job on performing some additional due diligence Scott.

You can look at an area's average statistics and assume that's what your property will perform at.