Brian B does a little investigation to find out that this GP had basically zero experience in the space yet took down a 50 mil dollar apartment in Houston ( not sure how they talked lenders into that one) but there is 10 mil in investor money that got wiped out as Brian showed this investor that the property went to foreclosure and reverted to the bank ( no one bid it).

I started out with a great cleaning company that did great work but the owner and I were not a good fit, they cleaned well but she didn't like my over communication. 5.) 

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence.

I set my rent standards a little high and realized that rent is actually not that high.. we have a morgage on it and it looks like the house is selling for more than we originally paid 4 years ago.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

You paid the property owner $40,000 in rent.  

Being owner occupied means getting the lowest interest rate, and a conventional or fha loan. 

Every time, there is new little things, especially in the financing process.

In addition, the gas bills have shut off notices and are not being paid. (3 units are occupied and utilities are all paid by owner).

Out of state investors can do really well here, but you can also lose a decent chunk of money if you buy wrong.Lots of out of state investors, especially those from California get a little blindsided because everything here is so cheap it all looks like a guaranteed great deal.