Are there any situations where it falls short (generally)? 

That way if the non profit falls apart you have control of the property.  

All rents are due on the first, and deemed "late" at 5 PM on the fifth calendar day, except if this falls on Sat, Sun, or Holiday, they get until the next regular Business Day, when late charge is applied.

This was a guy that was virtually always paycheck to paycheck, one away from financial disaster and if he didn't have his 70+ year old mother's house to fall back to would be homeless.

Do not fall into the listening to tenants excuses trap or that they will pay rent it in a week, you will only be kicking yourself for lost income down the road. 

@Henry TrinhWhen it comes to property, I can guarantee you that you need to learn how not to fall in love with your potential deals.

Even your cars and possessions typically fall into it as well, and even if you own a business.

Throw some coin operated laundry in each unit to make up the difference if you fall below $1500 per unit.

Hence a slight inventory increase and some geographic luck is producing a lot of properties there.I am not a the sky is falling person thinking the bubble is about to pop, but a healthy correction is likely in my opinion in the next year.

Just quickly check zimas.lacity.org and see if you're LA city and if the property falls under RSO.To your questions:1.