Because, during the investigation of the High-rise Condo collapse in FL, one of the factors cited was deferred maintenance. 

HI Dara,If you own more than 50% of the LLC and can prove that you own it via operating agreement IE you’re the manager or member for 51%+ you can use conventional financing to close on this refinance out of your LLC (you will need to quit claim deed it back to your personal name and update the preliminary title report prior to closing conventional).Fannie doesn’t care about seasoning and timing however if you opt to use Freddie Mac there is a 51%+ ownership of the LLC required and or 12 months payments or occupancy required so freddie is way tougher for their continuity of obligation (COO) requirements.

We use a YTDpaystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make surethey’ll always be able to pay the rent on time.

Yeah the down side is that they do ask for the due diligence fee with only preliminary information required for submission. 

This is a great place to learn and further investigate investing in real estate.

They actually came out and cut samples from the carpet and had an investigator interview us (we were not even in the country when this took place).  

Settling with you is often much cheaper than dealing with an investigation from the state, so they usually prefer to make the problem disappear. 

How does that get around FNMA guidelines: "The preliminary title search or report must confirm that there are no existing liens on the subject property." 

I moved this post into that forum, for example.You can see plenty of thorough discussions there and it is just ramping up.We also plan to do more investigative style journalism, come this summer with PassivePockets.

Ideally I want a triplex / 3 flat, but I would like to learn, network and investigate more.