If you do rent make sure to have you or your handyman walk through the home monthly to verify repairs and conditions.

Definitely verify those too before moving forward.As an example, if the ARV was $500k, then $500k X .7= $350k - $100k rehab = $250k max offer based on this figures.

Ronald Reagan's quote "Trust but verify" comes to mind.

You can suggest to the current owner to try and do at least something minimal to stop the leak.Tell her about the mold issues that could arise and affect his/her health if left unattended.Write into your short sale contract a special clause that requires a secondary inspection to verify that conditions of the property has not deteriorated since the original contract may serve as a motivation for the owner to do something to have you not back out, of course, the flip side is you may scare them off with such contingency.

I've seen it hundreds of times, absolutely they lie or forget, they doctor their little black book, the only way to get payments verified is with bank statements.

Verify everything.

I'm not sure how to verify if they are in preforeclosure or if I should even worry about that particular.

@Joe Hasbrouck and @Steven Hamilton II - I was told by a ROBS promoter (and have verified otherwise) that the C-Corp in a ROBS needs to be real estate operating company, not just a lender or holder of rental real estate.

If it is someone new or doesn't have a reputation you can verify to buy properties in general, then it may be a good idea.

Verify the numbers and dig for inaccuracies.Do not even attempt to approach buyers or people that have connections to serious buyers until the numbers are validated.