Hey Alex,We’ve been through this exact decision with other investors, I have pondered many times over and have done it both ways—here’s how we usually break it down when there’s a paid-off rental, tenants who might buy later, and plans to use equity for more deals:1.

Yes exactly, the idea is that if the deal doesnt work for whatever reason, it will be your equity on the line and in turn the bank/HML will hedge their risk.

In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

I have seen an uptick in inspection reports listing items that are not code violations and an abundance of them to impress homeowners with their thoroughness  how do I signal to buyers that they shouldn't expect any negotiation on reports that contain a dump of minor items Hey James,To set expectations with the buyers, I would highlight the fact that the property is priced according to comparables and current condition aka all minor items were factored into the asking price and therefore that price is firm.If you want to share general numbers, you can signal by saying, for example, that: the most recent comps sold for an average of $300,000.

Lenders generally prefer one borrower, one bank account, and one set of books, and an operating agreement lets you spell out exactly who can sign leases, approve budgets, and make big decisions like refis or a sale.

I If you make an offer that takes into account the condition I suggest you get in both a structural engineer and a contractor for cost estimates.  

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Compassionate capitalism and passion projects — that’s exactly the heart I hoped this thread would pull out.I love the way you’ve woven giving back into every layer: volunteering with women/children and veteran causes, helping relieve debt burdens, leading through the VFW, and even planting financial seeds for the next generation.

Property DetailsPurchase Price & Financing: $500,000 owner carry, 10-year term, 5% interest rate, balloon payment at the end.Zoning: Multi-family, mixed-use, RV parks.Current Condition:3 single-family homes (2 with tenants paying $600/month each, 1 with a squatter).7 manufactured homes (all condemned or in severe disrepair).3 cottages (in poor condition).Monthly Expenses:Mortgage: ~$3,000/month.Sewer: $1,300/month ($100 flat rate per connection, 13 connections).Taxes & Insurance: ~$700/month.Total: ~$5,000/month in carrying costs until properties are fixed and generating income.Proposed PlanMy strategy is to renovate and reposition the property over the next 2 years to maximize cash flow.

If there aren’t other fourplexes nearby, they’ll typically pull duplexes, triplexes, or even larger single-family homes within a reasonable radius and then adjust for size, unit mix, and condition.