The trick for the PM company is to know the pain tolerance of each owner and to determine that "perfect" fee to charge on every repair...A fee large enough to make the owner say "ouch!"

A general warranty deed usually warrants title through the whole chain of ownership through time.A special warranty deed which is what many banks and REO do is saying " I only warranty title on the property for the time I have owned it ".Quit claim basically says " whatever interest I have in the property I give to you but no warranty on title is implied whatsoever "Hope it helps.

Maybe the best option would be to have a 3rd party (attorney or eviction company) start it, so that they will continue through the ownership change?

When I explained that I would try to use a FHA loan she said that a FHA loan would not work for the property because, even though it is on title as a single family, it has 4 homes on it.Do the types of structures on a property determine if a FHA loan will work for the property?

At the initial B.O.H. inspection to bring the unit back on-line they determined how many occupants I was allowed.Good to hear you got it resolved with no issue though.

However, the buyer will lose that portion of the rent that would have gone toward a down payment, so it's important to do the math necessary to determine whether walking away is the best option.

If your plumber can play drain auger and figure out what's up then you are miles ahead.I've had similar issues in Toledo (swampland is arguable), determine how the basement has been draining first and foremost.

You need to run multiple rehab/resale scenarios to determine what makes sense for this particular house in your particular market.

However, if you end up determining that the stove is not working as a result of some sort of negligence or damage caused by the tenant, then you could try and bill them for the repair cost.

Then determine what the principal balance would be at the time of sale.