I'm assuming the original pipe in the slab went bad, although I've never seen or heard of that.

database...Is that bad?

That's not so bad. 2 years isn't a very long time in real esatte.

It was purchased in 1994 for $114K, not sure what the first loan amount was.It's my impression that the owner already had bad credit (by the percent on the loan) & because they are currently living in a lease option house (not sure if they moved into this when they moved out of the house they own).Geez!

Every individual property is in a seperate LLC and as broke as possible, this limits the liability should something go wrong (lawsuit) at any one property.The single LLC can be really bad advice depending on the state.

Then follow through, firmly but fairly with ALL tenants.You will have to judge your credit requirements partly on your current market if it is REALLY bad, but typically I require 3X rent for gross household income; some sign of stable, verifiable employment (or significant savings); no recent, or more than 3 MINOR credit derogs.

For instance, is it a bad idea to buy sub-to when there is a high loan balance and little equity?

The bad thing is the lenders are selling higher than the retail market.

And if its a bad market, why are DOM still at less than 100 days?

How bad do you want it?