If there wasn't, he needed to provide notice as I'm sure the lease would have a clause about unexpected changes like income, friends moving in, etc.

Are there unexpected fees, red tape, things to be aware of when working with Hud housing that most people overlook?

You could also do it and suddenly his old patterns begin to emerge and you have a real problem on your hands.Now, having said all that I am going to contradict what I just said, sort of, I have an acquaintance I know who killed someone in a drunk driving accident many years ago.

Wellllll... we received an unexpected visit from a city building inspector while we had a painter at work.

Unless a project is large enough to support professional management, I suggest you stick to an area of up to 50 miles from your base.If it cannot support professional management, buying out of your area all too often is a (financial) accident waiting to happen.As your experience grows and you refine your investment goals, let the demographics and economic numbers of the day guide you on markets.

You need money for reserves, unexpected problems, occasional vacancies, and the like. 

I'm not a lawyer so definitely take anything I say with a grain of salt but you are more likely to get into a car accident and hurt someone pretty badly than have a tenant sue you...someone you hurt in a car accident can come after you and everything you own, so having all your properties in several LLCs will not save you in that scenario but having great insurance just might...Of course to get the most protection possible is usually having a good combo of corporate structure and decent insurance but when costs start to add up and you only have one property to start with you have to see what gives you the most protection and bang for your buck.Good Luck :)

Meant to leave off the repeat in the title, left off the refi part by accident.

PLANS: Shortened Submitted Plans on Google Drive (the original document is > 24 pages long and has some personal information on it)So far I have paid: $600.00Land Survey$4,333.00Architect Fee 1/3$500.00Title 24 Calc$1,280.00Structural Engineering$6,520.23Plan Check Submitted 10/29$4,333.00Architect Fee 2/3So a total of ~17K and I am still estimating another 50K+ in just miscellaneous permitting fees and extra unexpected soft costs.

If something serious or unexpected costly comes up don't hesitate to walk away from the deal or adjust the price.You dont need your first deal a spectacular one as far as cash flow or cap rate.