On the first flip, I didn't follow the "rules" Jake outlined on his calculator and in his course.

We have a trust that outlines what we think is every scenario (but who knows right).

Then get a lawyer to write a letter outlining under the lease what happens to their money when you get it.

It sounds like you already made up your mind to enforce the terms outlined in the lease which, in my opinion, is the right decision.

I've bought properties that had structural problems that revealed themselves after I bought (which I had to fix)--and having gone through that process, I can tell you that I would never knowingly buy a property with structural issues (except in rare circumstances outlined below).So, why am I willing to buy a property that's on the brink of condemnation, but I won't buy a property with significant structural issues?

General and Market Specific InformationIs there a clear and viable exit strategy outlined?

This is stated in the tax code under Section 168(k)(8) which outlines the bonus depreciation phase-down rules for property acquired before 9/27/17.

Just be sure to outline everything in a clear, legal agreement to avoid future misunderstandings.

Here are some steps and strategies you could consider:Review the Lease Agreement:Start by revisiting the lease agreement to ensure that the no-smoking clause is clearly stated and that it outlines the consequences of violating this rule.

Whether a deal is "on-market" or "off-market" investors should stick to their deal box and find the best deal for them as outlined by their own unique goals and objectives.