They should have started the pay or quit and eviction process on November 2nd when rent was not received on time.Your friend needs to take the time to sit down and learn the regulations governing his business.

Your first step is to learn your state landlord tenant regulations.

You never give reasons or details and if questioned you simply state that you do not release that information.Unless your state regulations state otherwise they are not entitled to know and to protect yourself legally you never say anything to rejected applicants.

What is the difficult situation, tenants not paying rent is common and the process to deal is far from difficult.Work with the guy, but for peat sake begin the process of giving the pay or quit notice asap according to your state regulations.

Hire a lawyer to assist in the purchase and to review the HOA financials and regulations pertaining to investors.Buy with minimum down/maximum leverage if you hope to gain true positive cash flow.Dead equity and HOA fees will seriously cut into your cash flow and turn the investment into a liability.

The question is what do your state landlord tenant regulations say.

Your real estate agent should be able to guide you through the FHA regulations fairly easily.

The legislatures continued drive to add regulations for everything will cause costs to increase for landlords.Rents will rise as a result. 

Oregon is 10 in the country for fewest defaults and highest credit of borrowers for homes.. wholesaling would be extremely hard without major budget and you defiantly need to be licensed to sell property you don't own.. state will get all over you if U try the tie it up put it on craigs list or have a website or blast e mails.. one complaint and your toast in that regard.. you need to have your financing lined up so you guy then resell.. flipping is alive and well.. but again much much bigger dollars involved than in GA ( at least most parts of GA... its like working the expensive parts of ATL price wise.although you can still flip in the high 200 to mid 300 range but there is virtually nothing at or under 100k to buy .. lots sell for 100k and over.. rural Oregon will have cheaper properties but much harder to sell with lack of buyers.. but one thing is for sure  if you do a nice job on a flip and price it right it will sell in 2 to 4 weeks at full price and you don't have to worry about folks getting loans and such.. this is not a credit challenged area like much of the deep southas for paid trainers there are good ones and there are tons just selling rehash of those that came before them remember there is not very much that's secret or knew in this industry other than tighter regulations and most guru's are not worried to much about tighter regulation as it cuts down on their conversion rates to the mentor programs as noted above.

I am growing every year but the bank regulations are what they are.