I would hazard a guess that low income folks are more likely to get in over their head or not know how to handle their assets.

Reason; workers that need to go under house may snag low wiring, could pinch a wire where stapled, shorts, possible fire hazard.

I hope you read this Chad... an interesting thing about cap rates is that they often indicate the 'safety' of a location.

I just received an email notifying me that the city is going to demo the property because it is hazardous.

Your question seems to be asking how they would know because you want to follow that approach, which makes me pause....Since the bank is a loss payee on the hazard policy, yes, they will notice.They also notice names on tax bills being paid.They notice if there is an insured loss to the property.They may also notice someone else is paying the loan.They also audit loans, and bank examiners audit loans and occupancy can be verified easily.

He catches things I miss, like a safety net.

Even rodent droppings is enough to get an empty property tagged as they are a possible health hazard.

Home Owners, Hazard Insurance and Floor will be a definite.

But when you consider the greater length of service, ease and cost of maintenance, and safety, its a great product for a long term hold, mid to high end property.

I would go myself and repeat the process of what he did and get the phone number, then do the deal if i could.Then, i would attend his meetings and tell everyone what a moral hazard he IS.I would then post about it here on BP.Then, I would pay a visit to him - Disclaimer - (this part is hypothetical of course)