Typically you want to cover all floors and windows and items to remain unpainted like ceiling fans, etc.

., while John has a lot more experience than I do, and no real estate investor wants to be a restaurant operator, there are some upsides to Option 1, as I see it.The lower base rent could allow the Option 1 tenant to remain open throughout a recession, while option 2 may decide to close down the sales drop, if rent is too high.But beyond that, are a lot of factors that I would assess:Who is the actual guarantor on each lease?  

Capex is likely going to rise quicker than inflation, renter's income to rent ratio is going to be tighter than ever.

Keep in mind inflation isn't equal across all aspects of life.

With no limitations on growth, undeveloped land remains inexpensive.

Are you looking from a more traditional real estate perspective where you're trying to acquire an asset for long term preservation of wealth, tax advantages, to have guests help out with the mortgage payemnts, potentially have rents and home value increase in time with normal inflation, and are okay with the idea of paying some amount out of the pocket some (most?)

How should I proceed if the terms will remain the same?

I am fairly confident Tatum McDaniel at Jacksboro National Bank said they can, but I believe she said 25% equity must remain.

Instead of refinancing immediately, you hold out for rates to drop, which many economists predict will happen as inflation cools and market conditions stabilize in the coming years.Refinance when rates drop, extracting capital while maintaining cash flow at a similar level due to the lower interest rate.Repeat the process by redeploying the refinanced capital into new investment opportunities.This version of the BRRRR method is more of a long-term play, as opposed to the quick 6-12 month cycles many of us were used to.

If they fail to pay this option, then the option will be removed and they will remain as simple tenants.