@Deepak Malhotra based on your sales price, I assume this was also sold many years ago.

COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors.

Because you are essentially buying into an existing business, the sale of it could generate a disproportionate amount of tax for you given your time in this deal.

If transferring the property to an LLC, be mindful of the due-on-sale clause, and note that an LLC itself does not offer tax savings unless electing S-Corp status, which is rare for rentals.To maximize tax benefits, consider cost segregation, bonus depreciation, and short-term rental (STR) strategies, which could allow you to offset W-2 income if structured properly.

-Cons: On sale of property, the new owner would have to start from scratch on the income generation.

the claim that you fixed their credit or helped their credit just is hollow. once in foreclosure their credit is trashed.. going to sale does not hurt it any more or less..

Purchase price: $55,000 Cash invested: $25,000 Sale price: $119,000 Bought at around $50kFixed up at around $20kSold at $120k What made you interested in investing in this type of deal?

What is more common is someone saying they have everything, calling it "easy" and it's all just BS sales pitch.

For instance, if it's a small portion and you indicated during initial intake/application that electrical is updated they wouldn't have any way of knowing. 

I could say a particular town or area, but if there aren't any, many properties for sale that doesn't help.