Unfortunately this is common with DSCR and commercial loans.

What are the common pitfalls we should be aware of?

The most common reason for a void tax sale is the name called off at the auction was not the current owner of the property.

I ask because I was considering thier program until I heard what you said is a common problem.

A common pitch for realtors looking for listings is to declaure they have a large database of “buyers” they will bring those buyers by to see the property, but often zero proof of its existence..

this is in our lease regarding prohibited conduct, aka violation of the lease, "criminal conduct, regardless of whether or where arrest or conviction occurs, including but not limited to: manufacturing, delivering, or possessing a controlled substance or drug paraphernalia; engaging in or threatening violence; possessing a weapon prohibited by law; discharging a firearm in the apartment community; or, except when allowed by law, displaying or possessing a gun, knife, or other weapon in the common area, or in a way that may alarm others"I'm no lawyer but the person who wrote this lease is a lawyer, "regardless of whether or where arrest or conviction occurs" leads me to believe that suspicion of illegal activity is enough.

It's a common bias to over value your own assets 

As a result, it is much easier to talk about which areas you may want to avoid.The East side and near the Fair Grounds are commonly considered rougher areas. 

This scenario is extremely common and while I exaggerated numbers for effect, I have had this conversation with clients and their CPAs and the client is usually surprised when you put the numbers on paper. 

Not sure how the lawsuits arrived at this outcome, but either a certain % of buyer broker fees become an expected term, which list prices will reflect, or they solve the issue outside of the offer, like it becomes commonly added to the loan amount, so list prices eventually stop reflecting it.