His signature was on the lease dated 6/21, which was the same date they provided us the old lease - we assume to appear that they did not have the new lease upon request.Terms of the original lease provided to us on 6/21 for month to month leasing terms:- $1,200.00- Security deposit given- No smoking- Unit cannot be used to run business- One garage spotTerms of new lease provided 7/29 backdated to start lease term on 6/1- $1,200.00- No security desposit- Tenant can run business out of unit- Tenant has been and will continue to smoke in unit (no joke this is essentially how it was worded)- Tenant has the entire garage (two car garage)We signed the p&s with the contingency that no leases should be modified and no new leases would be signed unless we vetted the prospective tenant.We have been reading some forums and are wondering what our options are.

If you have done your homework and the property is sound, there should be nothing materially wrong such that a reasonable insurance policy would not cover.If you continue to do your homework and screen your tenants properly, you should have a low risk of them destroying the property that an insurance policy would not cover. 

Thank you for all of your responses, sounds like it would be best to continue looking for tenants. 

Our contributions “artificial cash flow” will continue indefinitely and we may get a little more creative with our next asset. 

Looking forward to connecting with others on the forums, continuing to learn, and contributing where I can.

Whether it is a DST or a NNN property or a TIC, they are all 1031 compliant  but give the exchanger the opportunity to move int passive assets while still getting the benefit of tax deferral and continuing depreciation and other benefits of real estate ownership.

It cash flows every month and it works.Also, be careful about banking so much on the appreciation, that's some crazy growth you just mentioned!

Paying off a mortgage is a solid guaranteed investment at an interest rate higher than you can get from any AA investment (like a bond).One endorsement of 15-year loans is on BP podcast #279 starting at 5:10 and continuing for 

As I continue my Real Estate investing business in rental properties with Do Perfect Homes LLC, I would like to share some exciting news with you.

If you are in a market with long term growth prospects (and we are), then over the next 10 years or so price appreciation will be a tailwind on the returns of your rental.