Hi All,I am looking to convert the basement into an ADU hence I will need to interact with local authority in order to obtain the building permit.

Assuming it's written in your management agreement somewhere that states the owners are current on all financial responsibilities related to the property, does anyone require them to actually provide a current mortgage statement, HOA payment record, taxes paid, etc..... at least at the time of the original management agreement signing.Recently had a new owner sign the agreement, only to find out after we had secured a new tenant for them, that they were in financial distress to say the least (inquiring about bankruptcy) .

Lender has risk if as @Chris Seveney mentioned buyer puts a second behind your first  this causes the first lender to have to go through a full foreclosure to remove the second in a default scenario. 

The zip codes here in Memphis that have the greatest appreciation will not have any cash flow.

The downside?

I try to teach my kids the importance of investing and show them real life scenarios any chance I can.

Ideally he will be stay there for 10 months and lease the property from the new owner while he gets ready for his move. 

Without knowing the specific area, etc, a 7% cap rate on NNN is likely somewhere on the higher end of the risk spectrum compared to the 5% that a Starbucks might command.

I know there are large property management companies that manage properties everywhere, but I am curious how they overcome all the challenges of not being near the properties.

SHORT THE DOLLAR Both candidates, Trump AND Harris are inflationary... in their own way of course, but I don't care.They and the majority of congress are under a "deficits don't matter" regime.How do I short the dollar?