In addition you can use it to collect initial security deposits or to bill the tenant for addition items such as billed back utilities, damages, etc.

When we get farther into this process, I will absolutely ask to see all the leases and proof of payment history for the current tenants. 

If you were entitled to those lawyer's costs your lawyer would have asked for them in the lawsuit because a judgement gives you the most ability to potentially collect that money back from the tenant. 

There are other towns with much less city intervention and will have much higher chances of collecting higher rents. 

@Morgan Reynolds Did you ever get your pitch book built or collect any examples?

The only thing a tenant does it prove the rent you can collect as opposed to a proforma of suggested rent.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

They will almost certainly demand a proof of funds letter too.

I got my first BTC back when you could go on one of the many faucets and collect 0.5btc/1btc a day.

The investors would be advised to pool together some capital to retain the services of an experienced securities law firm to do an analysis of whether they have cause for complain, cause for lawsuit, and reasonable chance of collection.