Look at the major components: roofs, siding, kitchens, baths, furnaces and ac units.

Each allow termination for removing unit from the rental market,   They also each allow it for extreme enough rehab, but what defines extreme rehab varies between the jurisdictions.  

A platform defines a starting model, not the model.

Every component of a house comes with a design life.

The other three often don’t cover the full operating costs, so you lose money every month when one or more units are vacant.You also have more components that can break: 4 x appliances, plumbing, HVAC, water heaters—more repairs and more expense.The issue isn’t whether multifamily or single-family is “better.”

Enjoy the read and love to hear your feedback2026 will not be defined by a market crash or rapid recovery, but by recalibration.

Also define nearby...

Property overview (high level): Stand-alone commercial buildingLarger and more functional interior layout than the prior locationFully built-out commercial kitchen (hood, suppression, bar, etc.)Adjacent outdoor patio space already set up for dining (big upside)Comes with all FF&E includedNo residential component — pure commercial use  Deal structure (seller carry): Purchase price written at $1.2M~$1.0M attributed to real estate~$200k attributed to FF&E (included in the sale) Seller financing on $900kBuyer cash in at closing: ~$275kInterest-only period initially (no balloon language currently in the contract)Target hold: 5 years, then refinance into a 25-year commercial loan  Business context: The restaurant historically did ~$950k/year in revenueWe are owner-operatorsConservative projections show the business can remain profitable even with slower $1k days mixed inGoal is consistency, margin cleanup, and NOI growth — not aggressive expansion  What I’m hoping to get feedback on: Does this structure make sense from a commercial real estate perspective?

The biggest risk isn’t habitability — it’s blurred lines between contractor, tenant, and leverage.If you allow it, I’d strongly recommend:• a short, written occupancy agreement separate from the construction contract,• clear start/end dates tied to milestones (not open-ended),• rent or a defined credit applied monthly (not netted at the end), and• language that occupancy does not pause payment obligations or excuse delays.Speed can improve, but only if expectations and exit terms are crystal clear up front.

Only an experienced local investment team can provide the resources and knowledge you'll need.Your Target Tenant Segment Defines the PropertyWhile the city defines long-term financial performance, the tenant who occupies your property defines income reliability.