In fact there is absolutely nothing wrong with the above described technique as long as it's fully disclosed and UNDERSTOOD by all parties.John is "disgraced" because he got involved as front man with a Salt Lake City real estate marketing firm that promoted John all over late Nate TV back around 1998 - 2003.  

I believe the seller now has to disclose it to other buyers if I do not buy it?

I disclose everything upfront including advantages and disadvantages.  

But they might be able to sue the seller under some other “failure to disclose” violation. 

@Tchaka Owen - so I’ve had mixed experiences with both Lending One & SIL, If the need came up again, i’d probably look for a new option... in addition to Lending one.Experience 1: Lending one, was preapproved for a loan on a new purchase & got all the way to scheduling the appraisal when a mysterious cap was put in place requiring a 60k per unit valuation (was never disclosed prior or even mentioned as a risk), they pulled out.

Now if this is clearly disclosed, at the end of the day it is your business and you can run it how you choose.Keep in mind, there is a lot of competition in new PM businesses because of the changing real estate sales market.

I did not expect to get anything from the tower as it was disclosed it was already sold so did not review that content closely. 

Just remember to notify your lender and the title company and disclose to the lender who will be the members and guarantors before the loan is underwritten.In most cases, form the LLC in the state in which you live or the property is located.

I think our prime minister mentioned something about a national rental lease that people have to use and having to disclose previous rental prices...problem is things like that are under provincial control, not federal.

@Aaron Simril you can try to sell it and hope a buyer will overlook these issues.Check your state laws, because in Michigan, you'd be legally required to disclose what you know about any repair issues and would be liable forever.Appears you may also have the opportunity to sell and avoid capital gain taxes on up to $500k of gains from a sale.