Hello all, I am new to the real estate investing world and I am considering the path of rental properties but one of my major concerns is the chance of lawsuits against the landlord.

@Charles Parrish Thank you for your responses.I am in the process of acquiring this SFH through owner financing.The seller still has mortgage on the property do it's going to be a wrap mortgage arrangement.The deed will be transferred on closing to me.I was just concerned about the loan being recalled.I have heard people say this is possible.

This will be the primary concern, but then someone who is also well versed in multifamily investing would be great for future plans!

(Bad credit is phone bills to collection and visa often late).The exit strategy is repay the property tax and put on mortgage on an 15 year amort so it will have at roughly 75% LTV in 2 years and refinance with a MIC.My concerns are as followings:If they do not pay I will either lose roughly $20,000 assuming an exit price of $130k or own a property (it's a duplex) that would have roughly IRR of 8% on a 3 year hold in a town that I do want want to own a rental in.The borrowers have enough money to pay as things are now.

In my quick look on zillow and redfin I didn't see anything wrong with the house, my biggest concern would be the Google street view showing the home in its un-rehabbed state along with the neighboring properties. 

I would send more because the more responses means you can then sort through and be picky about the properties in which you choose.We ONLY send personalized letters with the owner’s name, property address, and a ball-park offer.

My biggest concern is the inevitable correction, especially in Austin.

They should have.However, if the lender took title via deed-in-lieu and did not address this... then the lender assumed all of the HOA debt.

I am hoping they will be able to address all of these concerns just like they did for most other investors. 

If you want to DM me with the address, I'd be happy to look at it and give you some thoughts.