My eyes were opened to the idea of proceeding with a sale and then seeking post-sale legal remedies to perfect the title transfer in egregiously abusive or fraudulent BK filings.

Unfortunately, the buyer may have fell for a scam from a fraudulent hard money lender who promised to fund the deal 100%, and now is not coming through with the funds.

Typically the more dishonest with sellers your are, the more sellers you will get to sign your fraudulent contracts.

Often they hold the cards because they collect rent, then disburse to you, which puts you in a precarious situation.Sounds like the writing's on the wall, though in terms of your relationship with your PM and their sub(s).So, I'd be thinking in terms of replacing them first, and then if you feel the work was truly out of scope, fraudulent, or borderline negligent, AND you feel the contractor and/or PM has enough to loose to actually have to defend themselves and pay out, then I'd pursue.If nothing else this action sends out smoke signals to future PMs that you're not dealing with this nonsense. 

If the seller or their attorney determine the POF to be fraudulent you could have a lawsuit on your hands.

Developments out that way were hit hard during the recession and they had to combat everyone renting. 

@Quinton HuntleyFor cash flow real estate investing, the holy grail is Class C properties in Class B neighborhoods.Class B properties can also cash flow well, as long as you don’t overpay for them.It’s recommended to stay away from Class D, unless you really have experience in that niche (...and combat training).And Class A properties can be an appreciation play, but tend to yield considerably less cash flow compared to the others.

To combat this next round of laws, the NY chapters of the National Apartment Association have banded together to form a lobbying group called UnderOneRoofNY.org with the intent of 1) educating our lawmakers on the unintended consequences these laws have had and will have and 2) making a HUGE showing of support against these laws by showing up in person on lobby day by the hundreds.

For instance if you personally acted fraudulently or recklessly, you may be personally responsible.

They fraudulently entered into a contract knowing they would break it.