No more messing around.If they get out without issue, fix and clean whatever was done and thank your lucky stars you got out with minimal problems.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

Turning the management of the rental over to a property manager can relive a lot of these issues.

Is it a common issue for beginners to get a PM on board with only 1 property to manage to start?

We were fortunate in that we didn’t have too many issues with crime.

Its good to see that there are no issues at this point. 

You have to watch out for properties that hit 1% or higher, but have cap ex and tenant issues.

We have become good at it, by simply issue a 3 day letter to pay rent or quit.

If the house doesn't pass the occupancy inspection before closing, the municipality can usually issue a temporary occupancy permit.

@Stuart Udis I understand the importance of having the funds for repairs, vecancy and any issue that may happen.