That conversation could be revealing in and of itself.

In addition to this, I've had 2 clients this past year tell me they used Airdna in '22 and '23 to see projected and estimated income and was drastically different than actual income made with very comparable properties. 

To give you an idea of how we approach it, we assume the worst-case scenario right from the start is 9-12 months of no rent, $5,000 in legal fees, and an additional $5,000 in expenses to deal with moving their stuff, putting it in storage, and dealing with health code violations or NOV's from the city during the process. 

In addition due to prop 13, the tax base is a fraction of if it sold today.   

Additionally, ensure that all necessary notices for filing an eviction have been posted and properly documented in your records.

There should have been change orders alerting you of the additional charges, which would have given you the opportunity to make budget decisions.Check your management contract and check all your conversations with the PMC.

In addition, they are bearing the risk of you backing out of the deal and them being stuck with vacant units not bringing in rent. 4.

Both properties have a substantial amount of equity that’s essentially sitting idle.Would it be a good idea to tap into this equity (through a HELOC, cash-out refinance, etc.) to fund future fix-and-flip projects or purchase additional rental properties?

What kind of savings do you guys have in addition to the income savings each month? 

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.