If you're running a large portfolio then you would have policies and procedures.

The PM should be an expert on state law, and they should have policies and procedures in place to handle these situations.

For residential multifamily properties (1 - 4 units), can you use a home warranty to take care of the repair costs associated with rentals?

The standard legal procedure, as far as I understand in NC is the landlord must make reasonable effort to re-rent the property (which I will), and any vacant time till new tenants are found must be paid by previous tenants.

Legal Implications and RisksThere are a few legal and procedural risks to be aware of:Title and Zoning Issues: Confirm there are no restrictions tied to the property.

Specifically; rules, regulations and permitting procedure.

The rules and payment standards vary significantly from one area to another, so familiarizing yourself with the local housing authority's procedures is key.

But for many people, it is one of a number of sources of deal flow, to add to MLS listings, wholesalers, direct owner outreach, auction, etc.Assuming you are specifically talking about sheriff auctions, just make sure you familiarize yourself with the general procedures for the auction.  

You should consult a real estate attorney or tax advisor to handle the legal and procedural details.From a tax perspective, there are several implications.

That means having procedure and protocol for every situation--or at least, every common situation.