If the cash buyer coated the house with gold then it take years to sale or even a loss.

Not to say people aren't doing it and making money - and REI is local and not necessarily macro - but it's hard to justify a buy-and-hold strategy in a state that is experiencing massive corporate job exodus, increasing taxes, ballooning debt, and net population loss.

With respect to our tenants renter's policies, it will be a little more difficult to require this of low rent tenants but I have already discussed with my PMs and we are working on an approach to make sure they all have in effect policies so my policy is not first in line in case of a loss due to tenant negligence (even if we have to contribute to the cost). 

It was very eye-opening when considering high paying W2 jobs and tax losses versus real estate investing and using depreciation.

Since that's not the case, they'll have to either sell it and eat the loss by bringing cash to the table, shortsale it, or rent it out until there is enough equity to sell it.He doesn't need to get into a situation where she stays there and randomly stops making payments.

At least with stocks you can cut your losses and move on, but not so with a mortgage.In central NC, there is a lack of supply and high demand, especially now during the summer.

But still, in a crash those will still be tiny returns but look better than losses.  

The melting pot of stories, failures, successes, losses, chances, lost jobs, the ways people got into real estate, the teamwork of spouses and family, the education, the no education and jumping in, with money, no money, operating locally, across all states, marketing, strategies, taxes, property managers, rental properties, duplex, tenants, landlords, GCs, so many variables. 

Purchase Price55,000Value100,000Loan Amount64,500SNAPSHOTARLTV64.50%Renovation Budget15,000Sales Price100,000Time to flip (months)9Interest11.00%Purchase Price55,000Points3.00%Renovation15,000Mortgage Tax1.00%Interest & Origination Points7,256Transfer Tax1.00%Property Tax & Maintenance750Mansion Tax0.00%Taxes and Other Costs11,595Title Insurance1.00%89,601Broker Fee4.00%Property Tax and Maintenance1%Flip EconomicsTotal Profit on Flip10,399Acquisition CostsBorrower Cash in Deal At Purchase12,280Purchase Price55,000Borrower Cash in Deal (9 months)18,351Legal Fees1,500Borrower ROI on Cash in Deal (9 months)57%Mortgage Recording Tax645Filing Fees250Appraisal400PL Legal Fee1,500Title Insurance550Origination Points1,93561,780Interim ExpensesRenovation15,000Interest5,321Property Tax & Maintenance75021,071Sale Costs (Paid from Proceeds of Sale)Broker Fee4,000Transfer Tax1,000Mansion Tax0Legal1,500Filing Fees2506,750Sale Price100,000Costs89,601Borrower Profit/Loss 10,399

(This seems like crowdfunding without the benefit of the crowd, but play it out.)Would the individual get the benefit of the mortgage interest payments and the LLC reap benefit from the operating loss?