The owner has a tenant who is using the property as a dental office but he hasn’t paid in almost 5 years.

@Tamika Rue, while people at the courthouse might know their internal rules and procedures, they do not know the law.

Every little detail from finding it, to the rehab procedures and acquiring the GC, the financing and refi and where it stands currently from each one's rent to any obstacles you have while owning it today. 

A single tenant investment grade BBB-  or better the odds of default are very low and passive.If you had Aspen Dental, T-mobile, Starbucks 3 topper with corporate guarantee and 10% increase every 5 years then different ballgame then mom and pop tenants.It's all in the details that makes the difference which way you might go.STNL credit tends to sell at lower cap rate also with longer term leases.

Yes, it depends on your state procedures.

Is it a standard procedure to ask for 2 bank statements and 2 pay stubs.

Eldred.Not so much as a cover to cover read but as a point of reference for Real Estate terms and procedures.

I always appreciate advice, but after consulting several local Realtors they all seem to agree that when an offer is presented to a bank their procedure is simply not to take a deposit till after a bid is accepted.When it comes to private sale offers you are all right in that a deposit can possibly be tendered.Those are the facts in my area.

You want to close whatever "loophole" found in the screening process that allowed for such a tenant to be approved.If the PM placed this tenant, you might seriously consider interviewing other PM companies to hopefully identify one that has a handle on better screening procedures.

Sometimes that's okay if there's enough "profit" margin in the repairs.There are rigorous procedures and time limits if the former owner wants to redeem, otherwise you forfeit the right to be paid for those repairs.