I'm sure there's a law that can be easily referenced in the CA Civil code or some other legislation that tells me why I can't do that... but basically the question is this:If I buy a property, distressed or otherwise, and it has a tenant in it that can provide a valid lease at market rate, I am under the impression that I have to honor that lease regardless of its terms or duration.

And if other ppl are clicking then I am losing out.

Some years that will be straight profit to the AC guy as you need nothing done, other years he'll break even with 1 or 2 minor fixes, and some years he may lose out a little as a major doodad goes out.Insurance companies make money by understanding costs, risks, how often things break.

Even in my farm area in Dayton where the 2% rule is more easily attained, If I work harder and purchase properties in need of repair I can achieve better than the 2% because my after repair cost is lower than buying a move in ready property.

You will find that you keep the bad tenants and lose the good tenants.

You're also going to lose income.

The tax bill and the insurance would have to be changed to name the company so the lender can find out fairly easily the property was transfer.

Be aware that such financing can easily dry up, so have an alternative at all times, especially as you cross the line at 4 to 10 houses.

It seems like there is plenty of opportunity to lose a friend.

And still manage to lose out to homeowners with (mattress money)as we like to call it here.