This catch-22 only applies to residential (1-4 unit) properties.Finally, to answer your question about who applies for the loan:1.

It could be true, but it’s just as likely there’s another reason the current owner is quite aware of, and you’ll find out the hard way if you buy it.By buying on could-be or pro-forma rents, you’re buying as if the seller had put in the work to raise the rents, without their actually having to do so.It’s a great deal for the seller if they can pull it off, much less so for you.In the best case scenario you’ve already paid top dollar and now have to work your tail off to “catch up” to your projections by raising rents as soon as possible (sometimes with negative consequences as you pointed out, Fan).In the worst case scenario you find out there was a reason rents were so low (e.g., significant deferred maintenance you hadn’t spotted on the inspection and that tenants were bugging the last owner about for years).

I'm looking forward to those, I haven't read any yet but I know I've got a lot to catch up on.

And yeah man, let's catch up sometime talk shop!

We are scheduled to arrive the 15th so ill need to catch the meetup next time.

Then you'll catch problems.

Tell you about the plumbing, the foundation, all the core systems... anything he sees that catches his eye.  

Will they get one check soon for both months and be able to catch up on rent?

Why didnt your home inspection catch this?

@Mary Jay you only would get penalized for years where you made too much, just Google it each year when you do your taxes, because it is a simple formula they should catch it right away and as long as you take out whatever your contribution for that year was and pay taxes on it there shouldn't be substantial penalties.