In your experience, is this a reliable indicator?

Since you indicate damage, repair and repaint and deduct from tenant.7.

As others have indicated, it is typically the state licensing/compliance that becomes the focus in buying notes/CFDs. 

On the other hand, a 24-year history with an 18% net IRR that includes some losses may indicate a more seasoned sponsor who has navigated multiple market cycles and learned valuable lessons along the way.Regarding internally managed operations, like property management (PM) and construction management, scale plays a crucial role.

However, 80% of tenants in a recent CBRE survey expect to increase their spatial requirements over the next three years, indicating a shift towards in-person work and future growth.While new demand remains slow, these lease renewals are a positive sign, laying a stable foundation for the office market's recovery.

Rent rates continue to appreciate strongly, with a consistent 7% market (3% in some sub markets, 10%+ in others) appreciation over the past few years. interest rates have  decreased in the last few months, and with the latest bunk job report correction and current trends indicated from the feds regarding 'inflation,' we are being prepared to expect more mortgage rate decreases.

The math indicates the HELOC would be the least expensive pay down method to achieve that *IF* all the necessary requirements were met.  

On an estopple the tenant indicates what they paid in deposits, current tenancy status, appliances owned, etc.

There are key indicators outside of credit that will help you make a decision

The very fact that they are undocumented indicates that they already broke the law.