We take pride in maintaining our properties, though of course, they aren’t new construction.The tenants are now refusing to pay first month’s rent and sent the following notice citing habitability issues under California law (Civil Code §1941.1 and implied warranty of habitability).

First off,  you get to start with a property that is new, has a warranty, and should require much less maintenance. 

With a newer property you can get more predictable maintenance costs, because it is new and comes with a warranty.   

I tend to get a 10 year warranty and can use them as my maintenance for the first couple years if any.

Ideally E&O as well and lastly, make sure a builder warranty is offered that's transferrable to whomever buys the completed duplex.

You’re in a Strong Starting Position — You Just Feel “Illiquid”You already have several things going for you:Home equity: Roughly ~$140K in unrealized equity ($235K value – $90K loan).Pension & retirement savings: Long-term financial safety net.Stable W2 income + supplemental job: Consistency lenders like.Below-market mortgage rate (4.25%) on your primary — a great asset in today’s high-rate environment.The challenge isn’t wealth, it’s liquidity — you’re “asset rich, cash flow tight.”

For me, "Investor Friendly" means being licensed, ability to pull all permits, good communicator, is on top of their subcontractor contract management, makes sure I get insurance certificates and endorsements from all subcontractors listing me  as additional insured under their policies, honors warranties, has credit accounts at supply houses and can work well with my bank draw schedules,  is willing to approach me when there are issues rather than cut corners to "stay on budget".

Add clarification that rent obligations will be adjusted or abated if essential services are interrupted for extended periods, consistent with NY’s Warranty of Habitability (Real Property Law §235-b).

In my mind it is a small cost to the landlord that doesn't add up to very much agains the bottom line and can deter applicants from applying (both the cost and the hassle).We used the inexpensive screening service that our state landlord association offers and supplemented it with our own calls and checking. 

Knowing this, all investors should set out on a daily basis with the goal of eliminating premises liability exposures, exceed the implied warranty of habitability standards; be responsive and reasonable with tenants; Screen and work with- licensed and appropriately insured contractors, property managers, brokers; Use contract management to shift risks and defense; avoid your own conduct and conduct of others that arises to negligence and certainly gross negligence.