A number of discrepancies have occurred while working with this lender, and I'm concerned that this comment was more of a pressure tactic than a true statement.  

There are benefits from being in an LLC but its like having a 2nd vaccination, the benefits are small and it may actually be harmful in some situations.

Vacancy will kill your cash flow whenever it occurs, so you can't just blame that on first year - although vacancies are more common when first trying to get a unit rented.

Can't say its a regular occurance but it happened 2x today.

You should definitely consult an attorney if the landlord is not prepared to cover the cost unless he/she can somehow prove how the infestation occurred.

I think it may be a while though, as each passing year new rental challenges occur.

Expansion could have occurred and the floor contracted, otherwise you get a bowing effect in expansion and damage to the lap/T&G. 

So yes it could possibly be that a sale on the courthouse steps is occurring every day, somewhere throughout the US.

As a class C multifamily owner/operator, my company often buys properties where crimes (from petty theft to murder) have occurred.

@Jerry Poon   its not Memphis specific its out of state investing in any of the so called cash flow market I don't care where it is these occurances happen all the time... the cheaper the homes the more the less than honorable folks come in buy them and flip them to the uninitiated..there was a post yesterday about the 900 dollar house an investor bought in Detroit he was very proud of it...