Clear trail is the tricky part...I am always worried that if I get audited the IRS will find something that I was not aware about...How do you do your distributions, if you dont mind me asking?

I was too busy partying, drinking and getting fired from every job I had because I was lazy or hungover!

Thought you all would appreciate a dose of reality from the trenches of a multifamily operator - Section 8 abatement.If you have Section 8 tenants at your property you have to be aware that there are three parties involved in the relationship (you, the landlord, the tenant, and HUD).

They could also find out if they get any information from your county collector's office showing you as the responsible party for paying the taxes.  

By balance sheet or portfolio lender, I mean a lender who keeps mortgages on their balance sheet locally instead of selling it to a third party. 

I know realtors have property managers that they will recommend but I would also like to talk to managers that would be recommended by a third party.

I always thought it was a bit of a conflict of interest and preferred to buy my turnkey and put a third party PM in there myself.

Common unforeseen circumstances include, but are not limited to, delays in getting permitting or scheduling an inspection (though an expeditor may assist with this or a third-party engineer if that's permitted by the locality), the quality of the GC/subs/vendors and whether there is transparent and timely communication and conformance with the plans drawn up by the architect/engineer, zoning issues, setbacks/variances, what materials to use for the new builds (e.g., are you going to use cinder blocks or poured concrete for the foundation?)

@Paul Ellington I agree with what you, @Heather Skowronsky & @Sudhanshu Singha have recommended - that my parents are better off selling to a third party and attempting to get market value for the property.

Please do not comment on the legal aspects of it since both parties are already working with their attorneys.Property: Fourplex flat (two 3-bedroom 1-bath, and two 2-bedroom 1-bath with fireplace)Condition: Average, no major repairs expected.Location: Nice area; B-class neighborhoodLocation: Multnomah County, Oregon (not within the City of Portland limit, so less stringent on rules and regs.)Price: $600,000Down payment: Negotiable but I’ll probably put $5,000.00, maybe less.Terms: Seller financing using “Subject To” plus another note for the remaining balance.Seller paid 25% down on a $556,000 purchase price a few years ago.