I'm with you that sidewalk slip and fall litigation may be less likely in the Midwest than say Mid Atlantic which tends to have more litigious cities but dismissing premises liability issues can come back to bite an investor and when these properties have such razor thin margins that an investor must consider the cost benefit analysis of safety against ROI, there is a real estate issue and is usually a losing proposition.   

I'll be honest, I have coordinated 40 - 50 deals for investors and the ones that struggle is when the investor is light on funds and on razor thin margins. 

I literally think of loan sharks or getting your house or assets taken away from you when I hear it LOL.What does points mean?

The reality is real estate isn’t just about appreciation and cash flow—it’s also about survival when things go south.Many new investors operate on razor-thin margins, believing that rental income will always cover their expenses.

Lot's of sharks in those waters.

Because it has to, it's operating on a razor slim margin and can't afford the issues. 

The strategy there is more about long-term appreciation since cash flow can be razor-thin.

I don't believe this is a good deal, especially with you just getting started. sharks are everywhere, especially in real estate. get a few more (at least 3) other hard money lenders or look into house hacking with 3% down. take care.

If the people running it are self serving, that will show too.Based the on the leadership or lack thereof, REIAs may be sales oriented, education oriented, a nest for sharks, or someones personal ego outlet.

Take the dang carpet out (it's thin - you can use a razor blade to remove it).Best.