It's really hard to know when it comes to a few thousand of what is a half million-dollar home because you really don't know what it would have sold for if you had gone the other route.

Funny thing is one of the people who told me this was a bad idea was a person who himself has lost tens of thousands of dollars on non real estate get rich plans and I just sat there with amazement thinking to myself "Really!"

Your particular stomach ache could be anything from gas to a heart attack and an apendectomy is not going to fix your stomach ache, even though it was the perfect solution for the stomach aches of hundred of thousands of stomach ache sufferers.Sit down with a competent CPA.  

But, it's a good thing I am a "nerd", because my interest in machines and buttons, and what makes things tick saved me thousands of dollars in the long run)This business is a business of people management, evictions, damages, court scenes, proving you are right in court, and having the proof and evidence to back up what you say.With that in mind, and me being my own attorney in court, I found the following useful "Technology" that enabled me to never lose a case in my 13 years as a landlord.The following is what Technology did for me, that helped me in all phases of this business.QuickBooks:  Kept track of all my tenantsKept track of all RepairsWhat tenants owedHow much each tenant paid in Security DepositsWhen I purchased a rentalHow much it costHow many square feetWhen I sold itFor how muchProfit and Loss Report to see where I stood financiallyHow much money I owed to my VendorsAnd everything I wanted to know about my tenantsNextI had Vonage Phone (An internet phone) that did the followingActed as an Answering ServiceKept track of the date and time the call came inCould view the call in audio and in written form on my computerCould print out the message and take it to court with meKept track of the date and time I called someone Allowing me to print this out as well if I needed it for courtNextStamps.comThis kept track of every piece of mail I mailed outThe day and timeThe person I sent it tooAllowed me to print out a report if I had to take it to court for evidence; And it served as a proof of sendingNextPrinterComputer/laptop (in my case if it had keys or a laser pen, I had it. 

You don't make second payment and they have to spend thousands to foreclose.

If it is more than a few thousand, that will leave a very thin margin for an investor.If you mean the house is worth $100K in its current condition, what is that current condition? 

It created another problem which leads to stress and that is financial ruin.

I know you have heard a thousand times but couldn't resist! 

A few hundred bucks upfront could save you thousands down the road.  

He is managing hundreds of thousands of dollars of my assets.