After taxes (remember taxes are based on nominal gains not real returns) you typically lose purchasing power/wealthShort term speculators may rush into any asset thinking they know the future and the efficient market hypothesis is wrong.

If I just let things go, I'm going to be out of pocket as the carpets need replacing, the stove and fridge need to be replaced, the tub and shower might need replacing, and a host of other things, not to mention the rent I'm losing.

Your question seems to be asking how they would know because you want to follow that approach, which makes me pause....Since the bank is a loss payee on the hazard policy, yes, they will notice.They also notice names on tax bills being paid.They notice if there is an insured loss to the property.They may also notice someone else is paying the loan.They also audit loans, and bank examiners audit loans and occupancy can be verified easily.

What about the risks of losing such long term tenants?

Ultimately, we want to be sure that all our forum users can easily stay up to date on the most recent posts and we think this will help you do that.

Journal site was interesting. http://online.wsj.com/article/SB10001424127887324761004578282240778834074.htmlIt talks about people losing interest in stocks.

If you only lose that months rent and they leave consider yourself lucky.

So if you were going to lose money anyways, you'll lose a lot more, a lot faster.

Also, at the end of the year, my situation should look something like this:One recently purchased personal residence (using up about 15-20K of the above funds)One recently converted rental with 55K mortgage renting for 750/monthOne paid and clear rental renting for 550-600/monthMy debts could (and will likely) include:Converted rental mortgage 55K at 3.75% + PMI with PI 260, TI 220/month60K in student loan debts at 4.75 to 6.8 percent about 650/month payment15K car note at 3 percent about 270/month paymentWill probably need to buy another car for my wife (cost TBD)I could sell my paid and clear rental easily for 35K.

If you don't pay your mortgage, then you lose control.