It may be worth investigating why that is and use those whys accordingly when searching for the alternatives.Good luck! 

Also need to investigate a commercial business line of credit in the future.  

I trusted the seller, and never bothered to investigate it thoroughly or due my own due diligence on the matter.

We immediately called the HOA to contact the owner of the upstairs unit to shut off water and investigate the issue and had a water mitigation company (ServPro) come. 

I am I responsible for this illegal activity or should the utility be investigating the seller for the situation? 

We have helped clients with a lot of duplexes and fourplexes this year but the multi-families that go to listing go fast, so it might be good to investigate your financing options and be prepared.

I have been researching and investigating the potential and excitement behind this whole real estate investing / trading buzz.

Do you see any issue with my investigation so far?

Commissioner, TC Memo 2009-93 , Code Sec(s) 162; 195.) that is related to you.Started investigating property: Feb Put first contract (canceled): MayBought first property: December 30th (He incurred education cost of 21k before December 30th)Court decided that investor' s 21k education expense was not deductible as business expenses but would be considered, at best, the start up the cost.

It sounds like you did a good job investigating though, so kudos to you.They will continue to do these things, and one day, it will catch up to them and they'll bust.