I think it is common knowledge now that in starting a business you can expect the first few years to be very painful - long hours, up worrying every night over all the things that can go wrong, unexpected turns of events, near bankruptcy/failure, etc. 

Usually those PPM's have a gazillion disclosures, so any failure-to-disclose theory usually doesn't work unless it's something really major and wonky. 

Success is a combination of failures, personal strengths, self-awareness of personal weakness, and a million failures combine with tiny little successes mixed in.

(You didn’t get the ice cleared off the sidewalk, you didn’t notice the broken concrete, you forgot to mention the lead paint or the asbestos.) 90% of the time you’re sued (a number I just made up, so you know it’s good.) will be caused by an action or failure to act, not the property just sitting there. 

This was after doing the same thing on my first business - living in my uncle's basement, selling during the day, waiting tables at night, only to see those efforts end in failure.

Failure to Plan: They may not have a clear investment plan or exit strategy.

Cash flow is the ultimate cushion and allows you to do things that would cause the working Joe to load his drawers in fear of failure. 

Don't think that one particular out of state market will shoot you to success or abject failure.

Many OOS investors set themselves up for failure because they don't invest the time to ACTUALLY understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.

BOTH were toilet supply line failures.