By doing this the creditors use your networth and credit to still hold you financially liable for that credit and not all others you may have elsewhere.So if are operating as sole proprietor, banks feel you are a high risk exposing you and your personal assets that they are considering when giving you credit.

However, even then there is always a risk.

No but a lot at risk if it does..

I have to say we took a risk rehabbing the way we did.

Is it just "easier" to do without a security deposit and leave yourself open to that risk rather than the potential for a lawsuit if you don't follow one of the many, many, many rules around the deposit?

They do not want to risk losing their investment.

So the dilemma is buy in the northwest where I may know a market better but have a harder time with positive ash flow or assume more risk buying in markets that I cant know as well but that in general have better cash flow.

While it might be tempting to develop your own Multi-family, the costs and risks are higher.

Only one current tenant is a poor housekeeper and that has nothing to do with their low income/Section 8 status.The key is, when you provide affordable housing (or any type of housing for that matter) you need to reduce your risk.

Many organizations (property management companies, large investors) have a large (and mostly un-quantified) risk that they should be addressing.