Hi all,I brought a single family home last year in nyc with 20% down payment.

Here is what I would do:I would still close on the property but send a letter to the sellers broker and the seller along the lines of below (note I would have an attorney write it and send it):It has been brought to our attention there was a $15,000 insurance claim on the property.

I say it is the first deal because it was brought to me by the owner before placing any other deals under contract (which I have done in multiple states) legally, and ethically.

We just brought on debt in second position that we would pay 10-12% interest on that would leverage the property up to 80%.

The lease agreement could include a clause stating that any excessive utility consumption would be brought to the tenant's attention, and define what is considered "excessive" somehow. 

I truly appreciate the insight you brought!

Also Gary Swank brought up a great point about how the area can change drastically block by block, even on the same street.

Oh, and after the property is purchased and brought up to standard, HomeRoom has a team of decorators who do the work of furnishing the common areas.

When I brought up the cleaning fee he threatened to just leave once the end of the month was up and he'd have his gf clean for free which has not happened to this point already. 

At the same time, the third-floor tenants overstayed their lease and brought in unauthorized occupants.