Overstate ARV and understate repairs.4.

In fact it's hard to understate the value of understanding your municipalities government offices.

If you look closely at Michael's spreadsheet formulas, you may notice that the amount of principal he backs out is understated, making the taxable rental income slightly lower than it really is, or a taxable rental loss slightly higher than it really is.

The house inspector was provided by the vendor and he missed a defective roof, under stated damage to the floor and $6,000 worth of plumbing. 

Expenses will be understated.

It’s doable, but you’ll have to demonstrate a strong understating and a strong plan.Let me know if you have other questions

If the lender keeps the judgment in place under state law, it will linger until fully paid.

I FINALLY got the requested paperwork from the seller of a property I'm interested in, and found out that they understated the expenses (said tenants pay their own electric, turns out landlord pays first floor tenant's electric AND it is part of the Sect 8 lease) and they overstated the rental income (again, found that out from the sect 8 lease), PLUS the first floor tenant has a pit bull (told us they only had 2 cats) which will increase the liability insurance, which now means.....no cash flow.I'm so frustrated and angry right now.

That said, there are some out there who purposefully inflate ARV or understate repairs, so be extra careful.

The inspector (also a licensed GC) severely understated the damage and required repairs.