They now fall under the domain of "executory contracts" and have very large consequences for owners and little to no risk for the renters.

My attorney has just confirmed only the small liens will carry over which is minimal compared to property value.

Hi: To All 1031 Exchange Subject Matter ExpertsSo, last year I sold an investment property that carried a debt 800k.

Jose,Here is a list of "hidden costs" that may surprise you if you haven't been through this before:Closing costs when you purchase the propertyTitle Insurance Policies for you (and the lender if there is one)Miscellaneous closing fee's (survey, recording, etc)Loan origination feesHolding costs (during the time that you own the property)Builders risk and Liability insurance policy premiumsProperty taxesHOA feesUtility usage chargesBuilding permit costsDumpster / hauling chargesLoan interestClosing costs when you sell the propertyStaging (if applicable)Realtors feeClosing costs (depending on where the property is, this could be a huge cost) Professional fees for accounting, legal and taxesCapital gains tax on your profitI hope this helps you, and good luck!

Thinking what is the catch, a good way to diversify and minimize risk over owning individual units?

Sometimes it is easier to use percentages if you don't know actual figures but unless you really know what percentage to use, you are taking a risk by just copying what other people suggest.

Many times, you need to decide if you want to keep it as is (illegally) and risk someone figuring it out and stopping you (and maybe fines?).

If the later is your primarily focus I would focus on a property that produces healthy cashflow that aligns with your risk tolerance.Best of luck and keep us posted on your future decision!

The problem I'm dealing with is this seller isn't willing to pay for all of these inspections, hence I'd have to pay more upfront money to get the answers I need to then not be 100% certain I even want to take the risk. 

I was wondering...What are the risks of purchasing new construction?