The lesson learned is that you must, must, must properly screen the applicant.

I watched NRIA's commercial for 3 years before I personally visited its office with my two-page questions to understand its business model and risk mitigation strategies. 

I visited and sure enough it was...the condensation pipe was clogged and the water was overflowing and leaking through the ceiling in the back closet directly above where our furnace is located(and theirs is as well).  

This house was under contract with another investor who pulled out.Carpet #729 (Fortune Cookie)Vinyl #AC432 (Sandy Brown)Tops #7734-58 (Jamocha Granite)The house comes with a 10 year warranty and all future repairs must be done through the company or the warranty is void.COST - $150,990 ($95.00 deposit holds the home with approved lender and attorney) ESTIMATED VALUE - $153,000RENT - $1,325CASH FLOW - $364I got financing for a 30 Year Fixed loan for 5.25% at 25% down Now waiting until July before I can do anything else.

I would visit the place they're living at now to check what their living conditions are now and if they take care of it.

Whoever wants out has right to get the benefit of a full market value of his/her investment and must also be ready for the decline in the market value. 

I let my tenants know that renter's insurance must be documented before I hand over the keys. 

In order to be considered "In Service", the dwelling must be ready and available to rent. 

Failed inspection and will have to pay again for another visit in the future. 

My understanding was that by law the seller must disclose any liens prior to putting the house on the market.