I did not take posting quality photos of before, only images of the damaged areas, walls floor, etc.

I have been doing some research on some of these homes and at least half of them say that there is mold or termite damage.

Or is it more time effective to just simply put an offer in with a due diligence clause?

Key points are a) no bank qualifying (lease optionees usally have some money but damaged credit); b) low down (not a typical house downpayment of 10-20%); c) they can become homeowners.

You will have some other damages or major expenses.

Are their instances where you can choose to add deductible in the insurance policy if you find out more information about the tenant (criminal background, history with damaging property, or lack thereof, etc.)?

In addition to what Ned mentioned, you will also have advertising, entity maintenance, legal fees, evictions, court costs, periods of high vacancy, damage done by tenants (in excess of the security deposit), lawsuits, utilities (at least during vacancies), etc, etc, etc.

So, the effective rate is $0.

I've been told that letters aren't the most effective way to contact owners of large apt. complexes.Supposedly, the best way to get into the loop and have the first crack at purchasing larger multi-family properties before they hit the market is to (1) network with commercial real estate professionals such as Scott the CCIM (2) join commercial real estate organizations such as the IREM, BOMA, NAA, and ICSC or befriend individuals that are members (3) approach a property owner in the flesh and (4) network some more.You agree Scott?

I believe that right now its a matter of picking the person who will do the least amount of damage...