You don't have any way of knowing what condition they got the unit in, unless there's some good documentation from the previous owner (rarely is there), and smoking takes repainting, sometimes new carpet, ozone machines, and deep cleaning of everything to get the smell out so you probably don't have enough deposit to get it done.

Many investors will run into one of two major issues when growing their business; DTI limits and Fannie/Freddie slots available. 

Another example is mold/mildew in the washing machine - that wasn't there at closing. 

Does anyone currently own laundry machines in multi-family properties or apartment buildings?

He has installed slot machines, some of which work but don’t run on money.

I really want to buy a rental asap due to money making machines this beach town brings but I don't want to have to wait until my DTI comes down.

These aren't quite the grind that the first couple of deals were, but we're wondering: when do the systems take over and the business become a well oiled machine? 

It might not be a cash flow machine today, but if you stay with it, keep good tenants in it, and fix what needs to be fixed when it needs to be fixed, it will be a wealth creator for you.Best of luck!

It's not a grand slam cash-flow machine.

Freeing up Fannie/Freddie slots for investments?