We switched to a lease option model last year from a flipping model and we have been able to cash flow and experience appreciation on each of our properties in Arizona.

Unless things have changed, when we opened computer renaissance stores we were personally on the hook for the lease even as a franchisee. @$7500/mo that was a risk I wouldn’t take again.

I looked at their lease which ends in six months, and the lease states "No pets".  

We put together a PowerPoint presentation that detailed our software (AppFolio) and how we handle specific things such as maintenance issues and rent collection so with each inquiry we send out our presentation, along with a PMA contract example, and a lease example so they can see what the tenants will sign.

Do I need to honor the lease contract of the last owner?

Make sure you follow any notice requirements in the lease. 

Assuming there are 6 people in the lease agreement already (maxed out), how do we know whether more people are secretly living there if they never notify the landlord and every time the landlord is scheduled to pay a visit, they can either tell that person to leave for the day or they can lie about it and say he’s a guest.

However, my bank won’t finance the other 80pct without a signed lease with 1.2pct DCR.

I am curious to hear some of your stories on tenants in Los Angeles County when it comes to their lease expiring and whether or not they can stay even if you do not want them to??

I inherited a lease that is 12 years old and has no language about the landlord entering the apartment.