I had no idea this was the case or I would have pulled out that HELOC prior to doing a QCD on the property and turning it to an LLC.I’ve totally observed what you mentioned about one side of the house, not knowing what’s happening on the other side when it comes to the commercial first residential side of lending. 

I didn't have any prior bookkeeping experience.

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

The second thing I will say is that you as the buyer have to do your due diligence throughout the whole buying process, even to go to the property and make sure a tenant is vacated prior to closing the deal.. 

I'm in your same situation and also prior service. 

I have no prior experience in real estate, however, am fortunately enough to have access to sources of income besides a fixed job salary that provides me additional CF and a long-term safety net.

On Tuesday I called in for an update and was told that Don "couldn't get comfortable" with the loan due to several items, all of which were provided and discussed via email over 4 weeks prior.  

Depending on how long the prior owner lived there they may change very little or they could more than double.  

Hi Tony:The best way to handle is to visit the city planning department which zoning is usually part of to see if a variance is granted, and examine the plans filed.

Yes, there is an argument made that they have to disclose anything material, but that is subjective.With that said, a red flag that came up recently for me when investing out of state was when I was in escrow on a property that was purchased just a few months prior.