They are very cost effective for any size 1031 Exchange transaction.

Rent $ 119,460.00 Vacany (8%) $ 9,556.80 Effective Rent $ 109,903.20   Water $ 4,000.00 Gas $ 10,000.00 Electric $ 1,500.00 Taxes $ 12,000.00 Insurance $ 5,000.00 Maintenance ($500/door) $ 7,000.00 Cap Ex ($250/door) $ 3,500.00 Management (9%) $ 9,891.29 Landscaping/Snow $ 3,000.00 Accounting/Legal $ 1,500.00 Trash $ 1,200.00   Total Expenses: $ 58,591.29     NOI $ 51,311.91 

Where they ARE effective is when they get into the hands of someone who for whatever reason cannot/will not sell through the usual channels.

7 Habits of Highly Effective People by Covey

As far as partial losses, you're referring to the effect of "co-insurance" language in some insurance policies.

They are technically responsible for our tenant breaking her lease by approving her for low income housing; effectively "stealing" our tenant.

This is easy money, but has the negative effect that it's raising the appraised values of distressed properties, making listed deals harder to get at reasonable prices.

The only way in which that work effects the contract is possibly the completion date.

Meaning That The Foreclosure Doesn't Effect Their Contract To Live There.

I see no bearing or effect or how it creates equitable interest as it applies to title.