Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.
