I understand that if this option was used, then the landlord couldn't try and collect any further damages for breaking the lease.

However, the property was a tornado damaged property and he called our bandit sign. the process was like any other wholesale deal.

Is he going to say you didn;t lock up after and someone got in an damaged it?

Is it worth investing the time and $$ to determine the extent of the damage or should I just walk away?

I stopped short of calling him an idiot - cause I'm polite like that.Short story - some people hate bandit signs with a vengeance and you'll be lucky to get a couple of hours out of them before they are completely destroyed or removed.

I know it covers any damage my condos may cause and protects the banks from any losses due to damage.

.- Sellers failing to disclose clearly visible earthquake damage that has been in place since 1989, but that a Common Joe might not notice, so they are only going accept offers with no inspection contingency, even if it's an offer for $30k less than the other offer with a 6 day inspection contingency.- REO "specialist" realtors opening pre-escrow with multiple title companies, looking at the prelims, and using whichever title company screwed up and didn't notice the clouded title.

Obviously, you can't discriminate when renting, but you need to consider whether the prospective tenant will be good for the building, or cause problems with the existing tenants.So, yes you can start with a multifamily property, but start small and learn the business and learn about yourself in the process; but above all, make sure your significant other is on board!

My office is near Hamilton Ave.We are working on a burn out at this time.The owner has already collected his insurance money, so the motivation is there.He wants more than we are willing to pay, but as you know everything is negotiable.Fire damaged houses can be profitable.There is a service that will report to you all fires in the area.We work with Public Adjustors who represent owners to get the highest possible pay off.Insurance companies are notorious for beating you down and paying as little as possible. 

You are very intelligent and that is causing you to over complicate this whole investing thing.