I reeeeeeeally wanted this to be true, too, I wanted to believe him so bad.

At times, the seller may back out, we may uncover bad things about the property during the due diligence period which will cause us to back out of the deal, or financing may fall through.What makes it even worse, we, as investors, may incur some soft costs (costs incurred prior to closing) which end up being sunk costs.However, as investors, we are relentless in our pursuit of cash-flow.

Some of the best investment were made in bad neighborhoods and higher crime rates then as usual the area becomes gentrified and continues to grow in both equity and passive income.

But my realtor said they are going to do special assessment on this property and HOA runs badly. ( We requested HOA reserve document but no answers. ) We wanted to wait to see how special assessment going and close. 

Huge counterparty risk, I am just working through a scenario where a correspondent HML in the midwest got defrauded from bad diligence and their funding partner is having to clean things up.

Almost every partnership fails and many end like a bad divorce.

If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general.

Many investors may shy away from this investment because of that bad tenant.

One bad situation can harm all the properties.

Just hope it's not to bad.