On the other hand, those same units have seen the most rent growth from the proforma so they would be the ones least likely to have to convert and would be the most profitable for the original owners.Changing the construction defects law does not appear to be happening in the immediate future so the current trends should remain in place for at least the next year.

We rarely get feedback that our rehab budgets are off, except for latent defects that nobody could have foreseen.

Discounts are applied for defects in the loan as an offset to the risk of disposition and holding the loan.  

Mortgagor complaints: The mortgagor might find some defect in the property after taking possession, such as a leaky roof or rotten siding, an environmental violation such as heating oil residue, or a zoning or building code violation – and stop paying until you fix the problem.

You should expect a reasonable amount of defects and price your offer accordingly.

Seller financing usually comes into play because of three situations1- Property is not financable (construction defect, hazard, uninsurable, needs extensive rehab, etc.)                                                  

If there are safety issues or any defective systems, it is likely that they will not lend to you to BUY the distressed property TO renovate.

Forgot to mention will also wire or give the seller a check for their proceeds.So in this case, if I was representing Robert, I would examine the title and make him aware of any defects, double check taxes and water etc from the city.

Clear title means that there no other claims upon the title interests of record owners, such as mortgages, tax liens, judgments and defects in the recorded chain of ownership.It make look like a little thing to you but may mean your title includes lots of attached baggage, like undisclosed debts, liens, lawsuits and even brownfield issues (hazardous substances).I hated title research when I started many years ago but came to learn how to make money from the mistakes and oversights  by others.

You might have a title defect on your hands.