Check the big ticket items like roof, sewer line, windows, HVAC, electrical, plumbing, driveway, water damage, mold, termites, structural, etc.

If you find something awful like termite damage, etc, you repair it. 

I found out the hard way on two multifamilies in Oakland that I did offers on recently and they both had too many pest/termite problems.  

But, I think I have a better grip on it now.I was also caught by the term regarding the "initial lease," but it's followed with "and any additional term, " it can only be terminated for the following reasons and according to the HUD contract.http://portal.hud.gov/hudportal/documents/huddoc?

In the long term, it would be better to turn the unit.  

Or termite damage - but maybe you don't have termites in Ohio.Get comfortable with the bones of the home and you should be okay for rehab.  

Just call some up and ask them what they can do for fleas and any other pests they would advise - like roaches, spiders, ants, and hopefully not termites?

Our lease just says that we are only responsible for pest control in terms of termites.

I like cash flow and yearly high performance numbers from 'linear' markets, but I cannot deny the historical performance of SoCal properties.The reality is that by holding on to CA properties long term, it will appreciate.

The time period under consideration is also a key ingredient: your above post seems to implicitly assume an annual period - this is both a common and convenient window, but other durations may also be used.If a landlord choses not increase rent on a tenant at every opportunity that presents in the short term, it does not preclude an optimized performance of the property over the longer term.We have an instance right now where we have chosen not to charge market rent.