Typical reasons:Under capitalized properties - no money to maintain the property, rents drop, death spiralUntimely balloon payments - can lead to foreclosure if values are down, credit is tight, and the resulting LTV is too highPoor managementBad locationsFraudKiss a lot of frogs to find your prince.

Under this are some sub-bullets, which include, "Failure of tenant to regularly clean and maintain acceptable living standards" and "Vermin/insects on property due to negligence, poor hygiene, or detrimental conditions by tenant."

Once you have wealth and you are just maintaining it, the broad average will deal with the downside risk for little effort.

Keep in mind the more complicated you get with your structures the more complicated the annual requirements become (and sometimes costs too)   If you do not properly maintain the corporate formalities, you may be putting yourself at more risk than if you did not have an LLC.BTW, we invest a lot in Texas and from what I have read, it is considered one of "the better" states to have an LLC.

I am looking to get rid of the hassle of maintaining the laundry and dryer equipment and thinking of simply having a company take over.

Hello BP family.I found a property in one of the C market in AZ.Asking price - 178k with 10.2 % Cap rate. 6 units Full renovate in 2017-2018 so low maintained cost The place is 100% occupy.

Abandonment (implicit or explicit) is a defense against a charge of trespass.In order to establish implicit abandonment, send certified mail to the owner's address(s) of record, do online searches and record each step and each result, talk to known relatives of the owner or the founder(s), take photos and videos tending to show that no one is maintaining the property and particularly that doors and/or windows were/are open/unlocked ,etc.   

Generally though, I break it down into the "five pillars" of protecting your assets.The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments(maintain your property, etc) - these simple steps will help you prevent lawsuits before they even occur.

Instead, run your business in a professional manner, be polite-firm-fair, abide by the law, mitigate your risk, maintain proper insurance coverage, establish a sound rental agreement, enforce the terms of the rental agreement, courteously attend to tenant requests as they arise, understand the difference between tenant needs/wants and landlord needs/wants, set boundaries, maintain the property, and attend to issues in a timely manner.

Hi Ron,It might be an accounting issue with how they report to their loans and assets.If it is, you're probably not going to get them to change that.I've heard it referred to as Grey Box Assets (where they don't want to show the loan as bad) because it upsets the ratios they must maintain (But they will probably not tell you that.)