You probably don’t have mechanics lien rights depending on the exact wording of CA state statutes, here you wouldn’t.As for going forward, hopefully the heirs will proceed with probate and you can get them to honor your agreement.BTW, if you don’t screw up once in a while it just means you aren’t doing anything.....carry on.

Things to watch out on are what you'd watch out on any property -- all of the major elements of the home, plumbing, electrical, mechanical, foundational/structural, roof issues.

I've learned a ton and enjoyed every minute of it, but I've also seen the 60 year old men with bad backs and knees that never progressed past mechanic/journeyman level and will be nearly crippled in retirement.

We've done full scale renovations before but I've historically relied on my contractor and long time friend for the evaluation and decision making with respect to mechanicals (HVAC, plumbing, electric, etc..), but in the past our homes have been in the $150k-$250k price range.

And then anywhere it leaves a wall and in mechanical room use copper.

But I don't see a mechanism in which they get paid for that effort if they just get paid a fixed percentage of rent. 

So, you drop your car off at the mechanic... they write down all you want done to it and you sign the 'work order'. 

If you need more info on the mechanics of a wholesale deal...

If the buildings almost need new roofs,mechanicals,etc. then most of your cash flow projection went out of the window.Your 7.5% with deferred CAPEX could become 5.5% in year 1 and 2 because of major repairs.It also depends on how long you want to hold it.

While parts might be unlikely, and others unenforceable, you don’t need the headache or expense if anything bad occurs.Assuming this is not a strict NNN lease; my argument against these clauses is that you’re leasing the premises and all relevant mechanical systems, not buying them.