I've heard that you can take the property subject too the loan but I'm not sure how the process work.

@Kim Book , I heard that podcast too.

I would go over your contract and expense reports with a fine toothed comb.If you really think they are being dishonest, then get a new property manager.Make sure you look over the entire contract.

So, my money is on them being illegal in your city, too.

I had the P.A. in a small Northern CA county use my services a few years ago who also wore the hat as city attorney (maybe some other official designations, too.).

to go through everything with a fine toothed comb.Alternately, some sort of clerical error by someone, somewhere, has caused this to happen to your house when it should be the neighbor's.

But since I'm licensed I also go through the MLS with a fine tooth comb every day and work in other areas as good deals come up.

I do pull title on those and go through it with a fine tooth comb.If I were you, and I was OK with the physical faults with the property, I would just do my due diligence on the title, and proceed with it if comfortable with whats on it.

They may cover the repairs, but again depends largely on your policy.Look through it with a fine tooth comb, see what the policy says. 

2) Since obviously single family homes outnumber multi-families, I'm considering expanding my search there too.