HOA has healthy reserves per sellerOne special assessment since 2008HOA takes care of water, Heat (gas) and water boilers (one per two units), outside maintenanceProperty management cost $500 per month and handles all paperwork, payments to vendors and collection of dues.Thanks

Make sure you are well compensated price-wise for taking this problem off of their hands, including a reduction for the 2 month's rent you have to try and collect and the damages you've already seen + a huge % for what they still haven't wrecked! 

If let's say after a few months or so, after the transaction has closed, then suddenly, the seller had realized that he/she made a wrong decision in selling that home for that price, even though he/she knew it was below market value, and if they try to collect money or the difference by suing the investor/realtor --they may win the case because, she then told me that, the law will be more favorable to the one that didn't know any better, which in this case, it's the seller. 

Not quite as "black and white", but I personally know what it is like to have my credit score torpedoed because of a bogus $100 collection listed on it. 

Could cut another 3 to 4 inches out above,,more than that would require extensive floor wall reno and a notch out of dining room floor/wall. 

I'd like some advice on how to structure a partnership between 2 individuals with the following skill sets, for the following goal.Goal:  To acquire rental propertiesSkill sets:Person 1:  Real estate knowledge, license, find/vet deals, handle negotiations, legal, tax, bank account, collecting rents, finding tenants.

@Peter MacKercher For whatever reason the owner did not collect a security deposit for this tenant.

I would also include any repairs in the shortfall as well, not just the last month's rent One of the podcast guests shared some relevant advice - even if they don't have any money and you can't collect right away, get a judgement anyway.

I have seen several fires from people trying to draw their main power from an extension cord.

I want an air tight transaction and will have an attorney review and give me their seal of approval once I feel like I have thought of every possible negative outcome for myself.So far the possible negatives I have been able to think of are below and my intended solution will follow:Dodd FrankFinding a tenant without a license (I would like to market to those who have high days on market)facing penalty for performing broker transactions without a licenseI would market, find motivated seller, let them know that I can provide them with a cash offer, they can sell with a realtor (pay the commissions, spruce up costs, holding costs, etc.) or they can sell on lease option and get someone better than a regular tenant in the home.I would use standard docs specific to my state but they would be modified to include the below:Letter of IntentI would have them sign an intent to sell where in it, it would state that the property will be purchased via an option and the option will be in the name of a land trust.it will state that I as an owner and friend will be allowed to assist in the finding of a tenant, negotiate the lease terms, and be allowed to show the property without any compensation and at my own expense.LeaseMy lease will have verbiage stating that the tenant will be responsible for repairs, and normal up keep / wear and tear associated with the property up to $250 (this is my benefit I sell to the seller so that they don't have to deal with every tiny little tenant issue.Tenant will be responsible for all utilities and they are to be in the tenants namewill be allowed to extend twice, each for a period of 12 monthsTenant needs to inform owner of extension no less than 30 days before lease expirationthere will be no mention of the option within the lease, PITI will still be owners responsibilityWaiver of Liability associated with LeaseI will have a document created stating that the owner is solely responsible for the final approval, screening and placement of a tenant and that there will not be any recourse for myselfOptionFor the consideration of $1 (with receipt from trust to the owner) the trust will have the option to purchase the property no later than 45 days after the expiration of the lease.The purchase price will be agreed upon within 5 business days before or after the date of the lease expiration and if both parties are unable to agree upon a price, the owner and trust will each get their own licensed appraiser, average the two out and split the costs.this will be an option / right of first refusal hybrid and will very clearly lay out the expectations that there will not be any seller financing, the transaction will be in all cash or if the beneficiary of the trust so decides to get a loan from a reputable / licensed lending institution they need to provide a pre qual letter within 14 calendar days of the lease expiration and mutually agree upon a closing date.I would then sell my beneficiary rights to the trust for $5k, and exit the transaction.