But the other side of the coin is correct - the downside, and it can be huge, is potential assessments from HOAs who aren't solvent enough for new roofs or roads or maintenance.

Did you also know that there's a law that says a bank can seize account holder's money to prevent itself from going solvent?

A couple of thoughts specific to condo investing:1) Be sure to include the condo fees into your cashflow analysis, and budget for potential assessments as projected capital expenses2) Make sure the condo association is solvent - a good litmus test is whether or not the units are approved for FHA financing3) Make sure the condo association rules/regs allow for rentalsGood luck!

(only after the initial adjuster has been there) After comparing notes with dozens and dozens of owners during Florence I was one of the few that got insurance coverage for the actual repair costs and was "almost" solvent.

This photo is before pressure washing, we are trying solvents to remove the stains.

Most halfway houses and similar stay solvent through donations, government grants and insurance billing.

What's being ignored is that when a sponsor has a property or properties that are foreclosed on, it can have an impact on their remaining portfolio even if those properties remain solvent.

Quality and a flight to primo will remain the common theme in the solvent participants. 

Cash flow is important because 1) you need to stay solvent and if you're bleeding each month it's going to be hard to buy new properties and 2) banks want to see positive cash flow.But generally, the real wealth in real estate is through building up equity.

"The market can remain irrational longer than you can remain solvent."