Things were going bad from day one however we wouldn't be aware of it until late 2017.It started when 1 of our properties got burned and when started an insurance claim learned that the policy the management company has purchased for us wasn't covering the cost of property purchase and their savings of $20/month cost us loss of thousands of dollars.That was the start of our awakening and we started checking all that was taking place and we have questioned all the different bills and reports that were provided to us, during that we learned that 2nd of our properties was abounded by the tenant and the months late rent payment wasn't questioned by the management company, not only that but thieves had broken in to steal all appliances and vanities, created damage and leave the property completey vandalized, a squatter had taken over the property and we had to go thru eviction process.Needless to say we have dropped Mousa and his so called management team (Omar and Wanda) and hired another company to take over and conduct a full due diligence on our properties which helped us to find out that on a 3rd property the management company had failed to fill out correct paper work and the tenant was not paying her utility bills for months and that mistake of paper work forced us to settle thousand of dollars past due bills with the city, that's on top of the fact the tenant was way past due on her rent, this property was so badly maintained despite the fact we have paid thousands of dollars to Mousa and his team for various repairs they have reported and invoiced for.As you can imagine the poor management of this company had caused us nothing but losses that are at this point estimated in tens of thousands of dollars.It is clearly our responsibility of not checking this company in details before engaging in business with them, however it is this company lack of responsibility and management that caused our losses.Be aware and check them thoroughly before engaging

Prior to purchasing I conducted a inspection and the seller fixed everything necessary.

For example, I bought a fourplex and conducted a cost segregation study to front load my depreciation.

Here's a suggested approach:Verify Rent Increase:Request a rent roll from the seller to cross-verify rental history.You can ask the current tenant for confirmation, ensuring transparency and avoiding surprises.Contact Existing Tenant:Communicate directly with the current tenant to discuss the property and their intentions.Understand their perspective on the rent increase and their willingness to stay.Reason for Previous Buyer Backing Off:It's reasonable to ask the seller or their agent about the reason the previous buyer backed off.This can provide insights into potential issues or concerns with the property.Negotiate and Due Diligence:If you're still interested after clarifying these aspects, negotiate based on your findings.Consider conducting your due diligence, including a thorough inspection and possibly consulting a local property manager for insights.Evaluate Costs and Risks:Assess the costs associated with potential repairs and factor in the risk of the increased rent being accurate.Weigh these costs against the reduced purchase price and potential future returns.Remember, due diligence is crucial in real estate.

Some alternative strategies include requiring renters insurance with pet coverage, conducting thorough inspections before and after tenancy, and establishing clear guidelines for pet behavior and care in the rental agreement.

Unverifiable income will not be considered.Applicants must receive positive references from all previous landlords for the previous 5 years.Applicant may not have any evictions or unpaid judgments from previous landlords.Applicant must have credit score must be a minimum of 600.A background check will be conducted on all applicants over 18 that will reside at the rental property.

Cost-Benefit Analysis: Consider conducting a cost-benefit analysis for renovating the basement.

This week, my team and I took a moment to reflect on instances that left us astonished at the lack of adherence to standard business conduct and got me thinking...

As an agent and an investor, I’m doing everything humanly possible prior to submitting an offer to conduct as much due diligence up front to reduce as much risk as possible. 

Who is going to conduct a preliminary inspection?