Joe is considering the purchase of an income property that has four office units and two retail units. All six of these units are currently leased. Due to the high demand for rental space in the submarket, Joe does not anticipate there being any vacancies within the next few years. If Joe decides to go through with the purchase of this income property, he does not intend to make any renovations or modifications to it. Additionally, Joe has been made aware that the income property may contain asbestos. Note that exposure to asbestos can cause serious health problems.

a) What investment strategy will Joe follow if he purchases this income property?

(b) What is one type of risk that is associated with purchasing this income property?

(c) Why should Joe request an inspection of estoppel certificates before making a decision to purchase this income property?

(d) Instead of buying this income property, Joe decides to enter into a five-year purchase option. What is the advantage to Joe of entering into this purchase option?

(e) If Joe purchases this income property in spite of the inherent risk, what is one step Joe can take to protect himself from any financial loss that may occur?

(f) What must Joe do (if anything) to comply with the warranty of habitability?