Let's assume that the neighborhood is a C class and the median income of the city is greater than 3X of the market rent.Here are some of the considerations I've come up with so far:- Units are in need of renovation and capex is too high or not available- Unit quality is not the same as market - Seller is worried about losing tenants due to increase- Vacancy rates are high or filling units have been difficult- Rent increase would take multiple increases over multiple lease periods to get to market rate if seller is trying to retain the same tenant- Seller inherited property and just want to liquidate- Seller needs to liquidate quickly (financial burden, sickness, quick exit from land-lording)It seems like I might be missing a warning sign about a deal if they are selling with current rents that are under market; but again, this seems to be most of the properties I've underwritten.And in the same vein, what should I be worried about when purchasing a deal with under market rent with the intention of raising them after purchase. 

Hey @Chi Lo - I actually have a video on my YouTube page about this (lookup ClosedByMo on YouTube).Regarding walls being damp and waterproofed, it means there needs to be waterproofing on the basement retainer walls (this is something you can do post-construction and the contractors would need to dig around the house exposing the basement/foundation to apply the waterproofing). 

Is the cost of retaining an in-house attorney still worth it?

Many European cities have existed far-far longer than the USA has even existed.

If you do not regularly file for evictions, you'd best retain an attorney. 

Land generally retains value, and structures generally depreciate to zero. 

If the Owner wishes toterminate the agreement during an existing tenancy the owner will be held liable for payment ofmanagement fees for the duration of the existing lease as well as a $300 + GST cancelationfee.

Is there a pre existing loan with that bank with either of you?

Through this trust, a Mexican bank holds the title to the property on your behalf, while you retain all ownership rights.

How much do they want you to to pay, to pay off one of the mortgages (or both of their existing mortgages)?