Worst case you have someone who is genuinely trying to screw you (but I doubt that if they have not received the funds yet).

@Andrew Y.As you have an installment sale for tax purposes, you won't recognize the $26k of gain immediately.Each payment contains a return of cost basis component, a gain component, and an interest component.Encourage you to work with a tax CPA/EA if you're not comfortable determining the components and reporting requirements (Form 6252).

I appreciate your response and you have realistic/genuine answers.

I commend you for recognizing this and taking action to set a better course.There may be BP members in the San Francisco area who can give you referrals for both attorneys and property management companies operating in your area.

As long as you continue to own that property there will be no recognized gain.If you later sell after you have owned it for a total of 5 years and have  occupied it for at least two years then you will have to recapture depreciation at that point but you will get to take a proration of the gain tax free for the years you have actually lived in it.Example - You do a 1031 and purchase a property using it for investment for two years. 

Genuine question and a pain point for me, when I have worked with financial advisers in the past.

Since this would be my first investment deal, I feel I'm missing something, and want to know what to be on the lookout for.Here's the facts:6 family home in a b/c class neighborhood, with a lower than average crime rate100% occupiedRenovated 4 years ago Population is steady, jobs are mostly in health care and warehousing/distributionBuilding is older (1890's in a neighborhood mostly built in 1940's)County is about 100,000 peopleLocated right in the center of townI recognize the property may be worth less because of its age, but certainly not 40-50% less, especially when it was renovated a few years ago.

Building rapport and showing genuine empathy will separate you. 

Truth is, many people (me included) are waiving our right to a refund because we recognize that they are simply trying to remedy a problem that still exists.

Hey Curtis,If you can find a genuinely good deal you will be able to find a partner easily.