I hope you got independent legal advice, because I heard the exact opposite from a disinterested attorney.

The transfer of the property can be contested because she was a legal heir and not mentioned.

Legally you are supposed to give a written accounting of everything you have deducted from the deposit.

What are the legal issues?

Meanwhile I will legally turn the building into condos.

They also include, vacancies, maintenance, legal, management (whether I hire a property manager or do it myself), etc.If this assumption is incorrect, then please feel free to let me know.Thanks again.

noobdog - I just filed the trade name at my local town hall so it was legal for me to call myself that.If I'm an LLC all I really do is limit my liabilty.

Hence the claim leaves you open to legal action later when a deal goes bad.Best to imply that investors have to be accredited or otherwise screened so that you are being clear that this is not for everyone.John Corey

this is a little late getting to you (date wise)but the auction is a good way to find buyers.Buyers at auctions are cash buyers,and they usually don't get to see the inside (legally) of those properties that they bid on.

Operating expenses also include management (whether you do it or not), maintenance, advertising, vacancy allowance, office supplies, legal fees, evictions, court costs, utilities paid by the owner, lawsuits, fuel for your vehicle (going to and from you rental), damage caused by tenants in excess of the security deposit, etc, etc, etc.