I'm currently working with a hard money lender who initially had some great terms for my business partner and I, however, we ran into a little bit of a problem due to some tax issues with my business partner.  

I have raised the issues of misleading sellers hundreds of times on BP.

That can always be an issue.

The members of an LLC are issued K-1 Form and have to pay taxes on all profits as though it were income, which could expose the owners to high employment taxes.

Sand blasting alone will cost a little, then for stucco issues, you might need 2-3 come backs.

On a home that had been properly rehabbed, this should be a sound financial investment.Considering the fact that you are investing in real estate with unknowns - tenants, unforseen maintenance issues, insurance claims, etc - to me - a 4-5% return doesn't seem like an adequate return on my investment (risk vs reward).

If they still have an issue with the Lease, and then have an issue with me keeping their deposit because my document holds them to Court-upheld statutes.... then I'm happy to have a Judge decide where the deposit money should go.So far, it's never happened.

We've not had any issues with them since they moved in.

The issue with this agent is that she claims that the house was listed with her name attached and that was a dishonest remark.

I understand that in NJ the Bureau of housing inspections, inspects multifamily dwellings every 5 years and issues a green card.