Now on the third group of tenants 2 of the 4 applicants claim they can’t verify their identity with Experian for the credit and background check.

If you fully intend to rent the house, then that is mortgage fraud.

And you get three designs for the price of one if they are identical units.

:First, you should be screening your applicants with identity verification, a full credit report, and a criminal background check.

You'd be surprised as how many have ongoing criminal cases or arrest records for fraud.

It just happened.I actually had a debate with a co-worker about a situation almost identical to the one you describe.

Not necessarily. general aging of the property would indicate cap rate increases, but if youre adding value with stronger capex or better tenants/leases, then the cap rate can go down. of course, it all assumes interest rates are identical to lending at entry.

This was straight fraud, forging PSAs, not just overleverage or poor management though.

Fraud claim dropped and was never argued.

Also his idea of appraising all homes the same this will lead to a level of mortgage fraud that will make 08 GFC pale.. you will have the wholesalers and such going right into the hood  buying 15k houses were the same sq ft in a better neighborhood in any number of mid west and deep south citys is worth say 150k.. they will get a juiced up appraisal pull the cash out and rent and then default.. that's what will happen.. just watch any of the shows in markets like Milwaukee  and really any big city in the mid west deep south Nor east that has same housing product built throughout the city.. but one area ( the hood prices are 20 to 50k) same house in better area its 300 to 500k  its just a fact and reality..