MiThank you, I believe virtually all markets are over valued, but over the long term many (including my primary market) will have appreciation in excess of CPI. 

In 2021 we bought the building for $1.5M using private lenders, pushed the occupancy from 50% to 80% occupancy and it appraised for $3.125M, allowing us to pay back the private mortgage.Right now, we are in the predevelopment process of design and piecing together the capital stack for the redevelopment deal, which will be made up of historic tax credit equity, RestoreNY Grant, DRI Grant, etc.

I am still not sure how he gets positive cash flow while repaying 5 year loan back, unless he charges buyer in excess of 17% for 30 yr fixed loan and pays very low interest to PML lender.

Depends on your scenario exactly though, never one cut and dry answer to which is better.

Seems like this thread has unfortunately dried up a bit! 

If you didn't budget your rehab correctly, and don't have access to more money, you will be stuck (this is also true if you buy with cash without any excess money).  

I am assuming in this that normal cleaning was done pre-occupancy and they are excessive in their expectations.

Mice are filthy and when their fecal matter dries up it becomes airborne because it's powder and it's full of diseases and it's hard to see visually when it dries up.

Rent control measures, burdensome employment regulations, and excessive administrative requirements exemplify this.

I am at a crossroads on what to do about this one, but hopefully the market saturation from competitor assets in Katy, TX dries up.