It's funny cause they have less of a reason to get to know the neighbors than a long term tenant but more time to develop friction than a short term guest. 

Nothing like seeing water where it shouldn’t be to remind you that no matter how much homework you do, surprises happen.Another property developed a few leaks months into the rehab, and we eventually found out it needed brand new piping through the entire property...about $25k worth that hadn’t been accounted for in our evaluation.

Note he was not the developer; all he had to do for the value add is acquire a property exceptionally well suited for the ADU bonus density rules at a value based on current use comps and sell the same property for a different (or expanded) use.  

Ask Kmart and Sears how that worked out.One of the real advantages of private lending is the freedom to develop unique loan criteria.

I’m now approaching the halfway point in my undergraduate degree in Real Estate Finance & Development.

@Caroline Gerardo  I know a lot is done on the phone now but if he is going through relators has he found one that does alot of rentals and tried to develop a personal relationship with them. 

I just posted a link to a new development project in one of these good markets in the Classified forum. 

Amazing.Work with investors, developers, real syndicators not "content creators"! 

If you can develop an approach to sort out better those who are more or less likely to default among those with lower scores you can improve on that risk as well. 

There are a million explanations, but rarely do I find something more than an actual method for developing goals other than the "goals depend on markets".