Not to put a damper on things, but there's no room for sugar coating it when you're thinking about picking up $1M in debt, so I'll just say that honestly sounds like a terrible deal to me personally, unless you think you can heavily outperform their revenue numbers.Annual revenue of 10% of purchase price is pretty much the very low end of the barometer for STR. 

Yea CA sucks and Im not going to sugar coat it.

Too much sugar and caffeine isn't a good thing; eat healthy.

@Aaron Macken you keep asking about enforcing the lease, but you may as well try to get blood out of a rock!

Nothing is a guarantee but people that are bound by blood or marriage are far more stable than a group of friends, co-workers, or people that hooked up on Craigslist.When I rent to three or more unrelated people, I require that each of them make at least 2x the rent income individually.

we did have some hoops to jump through during the closing process, so jon's experience came in clutch, and we walked away with an assignment fee of about $97,000 to split. while this was MOSTLY profit for us, we did have ~$1200+ in kickbacks to pay out, jon has a team to pay, and i'd invested about $4500 (and blood/sweat/tears) in the mailers. this deal was a huge win for everyone involved:- the seller got exactly the price they wanted, no inspection, as-is, no realtor fees, and got to sell with 2 non-paying tenants still occupying the property- work was created for jon's team, my assistants, the closing company, the attorneys...- the end buyer negotiated some big discounts with us, and now has HUGE potential upside- months of work will now be created for the end buyer's renovation team- the non-paying tenants were offered cash to cover their moving expenses + then some- 3 people got paid kickbacks for helping get this deal to the finish line (2 RE agents and 1 cold caller)- 6 future tenants will have newly-gut-renovated units to live in- the sellers will get to see this building live up to its full potential in 6-12mo, beautifying the town they live in...the list goes on!

Purchase price: $7,100,000 Cash invested: $1,200,000 A two-story office building at 11104 W Airport Blvd, Stafford TX 77477 in the East Fort Bend County/ Sugar Land Submarket.

@Angela Walter I am in Sugar Land, what are your areas of expertise?

My inspector calls me up and explains all of this and says there’s blood everywhere.

As long as theres no blood for them to suck on they will die out but the foggers worked.