That HE loan would make you cash flow negative on the first property, especially considering you are not even factoring in any repairs, maintenance, vacancy or management.

It will help you analyze deals quickly but you will likely need to adjust some of the figures such as rent, % towards vacancy/cap ex/maintenance.  

There is a faster review/approval process if the exterior works are minor and for maintenance purpose.

I was informed by KCMO Health Department that landlords are supposed to be paying an annual fee to them and they conduct inspections of rental units in the city?

Better cash flow and less maintenance than renting the whole house.

Finally, the cost of living is relatively low which makes maintenance costs lower for the labor.To Your Success!

I will also look for houses with deferred maintenance and search them to see if there is an absentee owner and/or older in age, maybe ready to move or downsize!

The end of the world would be selling this to buy a cheaper asset than needs more work, do this all over again, to make the same money and lose a better asset.Slow down and work on this property and the rents and the maintenance, and also enjoy living there.

Ok to summarize it seems that there is Zero way to dodge CA annual fee.

But when the two elevators went down and we realized we were barely able to make DSCR and weren’t cash flowing enough to cover long term major maintenance and cap ex, we had to pivot into Plan B.in regard to renovating in a partially occupied building, it’s a nightmare.