Attention new investors: As I’ve immersed myself in the BiggerPockets forums, I’ve observed an extreme emphasis placed on asset protection by those entering the business but their approach and where they decide to allocate their time and resources is misplaced.

Leading up to the deed in lieu, we performed our own site visits and the conditions we observed do not align with the information in the inspection reports.

Couple of observations here from my perspective:-I would have gotten the "old tenants" to sign a vacate agreement wherein the agree that they are not entitled to pro-rated rent for remainder of that last month. 

Otherwise, it would depend on the maintenance requests and what is observed during them.2) Require them in writing, so you can track them!

A more general observation on this topic, intended for you and any future readers - find out from the agency that has control over this area exactly what it takes to LOSE grandfathered status.

It is indeed difficult to achieve good appreciation in most markets I've observed.

Based on what I have observed, I do a thorough screening, and still I have had one or two slip through the cracks over the years.

There's nothing wrong with fixing something that is broken, but you shouldn't be making improvements to things that are clean, safe, and functional and that were fully observed by the tenant during the showing process.

But it's really not, it's just an observation of the truth.

I am currently just researching and want to attend and observer an auction soon.