hi all, first off this deal scares me, not that it is bad but that it is big, there is an investor that wants to unload his portfolio of rentals and retire i received a voicemail and email from the investor containing the info and he asked if i would be interested, i definitely am but i look at the size of the deal and the potential for growth i feel as if im looking at a giant, bordering paralysis/analysis. located Near Bradford, PA and he is open to creative financing, so here are the numbers.asking $585,000  - market value 750-800k10 properties totaling 36 unitsGross rent $229,320Taxes- $26,200Ins- $13,225maintenance- $17,515PM- $34,164Utilities- $72,337______________________NOI- $65,870now i plan to swallow my fear and call him tomorrow with a already large list of questions, all of the units are on a month-2-month lease and he has had 95% Occupancy over the past 10 yrs. all properties are in the same town in a decent area (C+   B) and are rented ( 500-550 ) quite a bit blow ave rent for the area ( 650-800 ) so definitely room for growth, in addition i want to figure out why the utility expense is 72k.. that's nuts i am assuming he is picking up a lot of the utilities so with some adjustments to management, rents, expenses i see a great opportunity.i also ask what due diligence should i do on the PM since they have one in place and what should i expect in the transition if we move forward i currently manage my 3 units myself an see that 34k and wonder if i could handle the management or see how i can tighten up the reins on the PM to get things moving for optimum cash flow.  

Your remedies are contained in your contract, period.  

Your notice to quit must contain specific language to allow you to accept rent after the notice to quit is served without it interfering with your eviction.

An "illegal" lease that contains language that conflicts with rental laws can be a train wreck, especially if you have to take it to court for an eviction.Having a solid lease doesn't necessarily mean you have to spend a lot of money either.

If the problem is contained to the basement, and cleaned up by the tenant at the end of the lease is this cause for any loss of security deposit?

These clauses are contained, in all Promissory Notes nowadays.

@Ofelia FloresThe lease application would contain the buyer's information such as DL#, SS# and birth date as well as where they work and people to contact in case of emergency but those likely will have changed in 10 years

Rick's Arizona Real Estate Law website at www.keytlaw.com/az/realestate/azrelaw.htm contains lots of information about Arizona real estate law.

These clauses are contained, in all Promissory Notes nowadays.

for example maybe a wall could be designed and constructed on the edge of your property to contain a potential mudslide.