(even if it's a previous LLC)I am eyeing a property in my hometown. 20-units, all 2bed/2bath, new roof, water heaters and exterior paint.

This property required a new roof and some basic renovations.

Roof, windows, doors, furnace, hot water heater, concrete, etc.What research did you do on the neighborhood and probably tenant pool?

The roof needed to be repaired, which added another $10,000 to the cost, but doing that allowed the insurance to be cheaper and ensures that the rood is good for another decade.

And then what about the roof, isn't that your biggest weakness then and how to you strengthen that up?

We have started including disclaimers to property owners when dealing with water penetration especially on interior walls that can come in from the roof, the siding, windows, doors, etc.Generally if you're not happy with your PM you should trust your gut and try out someone else, but also keep in mind 2023 and 2024 to date have been the most difficult leasing years in the last 10 years nationally and especially in Philadelphia.

While you can potentially rent-by-room, this is a really tough configuration to do that with as 3 unrelated people seldom want to share a bathroom and if they do, they expect a pretty steep discount for it.When you mentioned rental arbitrage do you mean that you're open to someone renting it from you for the purpose of using it for arbitrage? 

There are laws protecting the sober living house from "nimby's" but you might be limited to how many unrelated people can live under one roof.   

In both cases, the tenant should be educated on their responsibilities and held accountable.Even if the water source were a leaking pipe or roof, you should be able to identify the problem, dry it out, and remove the mold professionally within a few days and then the problem goes away.Simply accepting the tenant's claim - without verification - and allowing them to break the lease without penalty is a bad policy that will cost you much more in the long run.

Worst case, structural and roof repairs.If it is in the worst case side I might not tackle a project like that in that location due to the added complexities.Once again thank you all for your responses