But the silver lining is that it makes your cashflow greater cause your mortgage amount is less and your payment is less so your cash flow is greater.

I'm debating buying a 3 unit where the existing tenant in the top unit clearly smokes in the unit (cigarette in ash tray in listing photo).

I come to find out one tenant is smoking in the one unit and the other tenant has a puppy - both lease violations. 

You're right about the smoke issue but I think it is a given here in Japan.How about it Leo Mervin Atanacio?

For example, even if there is only smoke damage, structural components may need to be replaced. 

Upon return of the property, it was clear they had been heavily smoking pot inside. 

@Drey Taylor We had a tenant fall asleep with a pot of grease on the stove in one of our properties, and burned the entire kitchen down along with causing significant smoke damage to the rest of the property.

This tenant has ignored my warnings - to stop smoking in the unit (multiple times), having unauthorized guests in the unit without my permission, have spread rumors and lies about me throughout the neighborhood, and have ignored my texts (only method of communication).  

@Danny Van you can also attend Oakland REIA and MREI, both held monthly in Troy.Regarding what to do, first you'll need to call the City and get their rental application to fill out, pay the fee, submit and schedule the inspection.It's mostly a health & safety inspection: smoke detectors, a CO detector near furnace, handrails, GFCI's. etc.WARNING: Warren doesn't really like landlords, so they can be picky about previous work done without permits - even if it was done before you bought the property!

So I check the plumbing that we replaced, I look under sink, I check smoke detectors, also look at spot I repaired under a bad window seal,  heck doors for light leaks.