You may run into issues with re-tenanting and it may take longer than you expect or cost more.  

The issue always boils down to equity.

I had a similr issue a few years ago with a property in Cleveland where my property manager hit the same roadblock.

The inspection showed more issues than we expected but the seller wasn't willing to negotiate so we cancelled in the due diligence period.

However, in this situation, it appears to be a pattern rather than a one-time issue.

After that, if issue is addressed but ground floor tenants keep complaining - remind them that common noises are expected when living in an apartment. 

Having a rock solid SOW can prevent many of the issues that arise during any project.

I have FAR MORE MANAGEMENT ISSUES because of the SHARED PORCH.  

Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

Of course it this becomes an issue for the property management company, they may chose to stop managing the property.- The owners don't share any of the equity growth with the management company.Drawbacks of Turnkey properties- They are usually purchased at market value (or sometimes just a little bit above) so that after paying closing costs the investor who purchased the turnkey investment has a lower net worth than before the purchase.- There is no discount or created equity over and above the amount that is used as the down payment for the home.- The management company charges a management fee of 10% - 15% which can be a little higher than average property management companies, but that cost may be offset by higher quality of services.- The management company also charges for other services such as fee for coordinating maintenance and repairs, and turnover and releasing.