Provides buyer with clean preliminary title report from ABC Title.Something smelled fishy, I don't recall what exactly tipped me off, but I called a few local title companies and discovered that pre-escrow had been opened with them revealing clearly clouded title. 

Please tell me if your experience/ due diligence reveals anything different.  

He is an investor so we trust his thoughts, as well as what the inspection report reveals....hopefully not much).

I've been looking serously since June, even got as far as a contract on an REO untll the inspection revealed an additional $10K in repairs, for which the bank was not receptive in a lower price.Basically, my vetting of properties includes taking an avg comp at 65-70% of ARV, to determine if taking a look is even worth it.  

Also be wary of letter of intents as they are not legally binding, specifically as there is a current tenant in place, and I'd imagine you likely will not be able to get a signed contract in place from this potential tenant.If the borrower won't reveal who the tenant is, I think that might be red flag enough to turn this down.Just a thought, in Southern California, there are a lot of tenants who are willing to do this in the marijuana industry. 

All of this, in my opinion, will likely reveal why you're not cash flowing.So far, I haven't heard anything that indicates the PM is being nefarious; just opinions without any evidence.

It might be Monday morning coaching, but I bet a review of their application information will reveal a clue or two. 

The MERS search by the Closing Attorney revealed the 2nd is supposedly with the same company that has my 1st. 

So I want to get to the decision-makers without necessarily revealing the entire topic so I can at least get a direct refusal, instead of someone who decides not pass on the message as they benefit from the property remaining as it is currently, or in the future, and I keep  wasting time on the property anyway.   

There'll be a lot of disappointed people next week (or in a few years when the reality/pit falls of their "investment" reveals itself).