If one of my employees, when I was a manager, messed up, and they did, I didn't even get upset, I would just send them home as "punishment". [ note that I did not dictate their salary at the time, the corporation did. and I felt they obviously needed that little paycheck, and did not get terribly upset for their mistakes ]The point was that the banks, while a payment from a different source might be considered a constructive notice, have put in place systems [ computer / minimum wage worker ] that intentionally ignore it anyway.

I might just have to go back into the construction business full time.

I would tell your home inspector to pay close attention to the plumbing and electrical to make sure they are not pulling off some of the other units.

The second house is under construction, the third went to permitting today and the fourth is in the planning stage.

Of course, the utilities are off, so what could an inspector find.

A decent home inspector will catch this, identify it to his client, and you'll have a buyer who is wondering where else you may have cut corners...

If you're not comfortable determining this for yourself, I highly recommend you find a good property inspector in your area to go through the house with you.

One of my main concerns would be once the building inspector starts poking his fat snout around that I would have to get the wiring, this, that, or the other "up to code".

Depending on your expertise in construction, I would consider taking the contractor bids and adding 20 percent.

The trouble is that 2 of 4 members of the fund also participate in the partnership doing the development so there is a bit of a conflict and I could see how a disgruntled investor would claim things were constructed to somehow circumvent the rules.