I find it critical to test those assumptions under different scenarios when I’m looking at a deal.

I interpretttev @Alan Asriants statement different than you but agree it is not clear   He could be indicating pools, basements, sunrooms do not provide a means for an extra tenant.  

I did a bit more digging on the topic ... it seems the better way to do this is different than I originally described the "second leg" of the txn ... instead of bringing the seller into the LLC itself, you instead create a note and pledge your interest in the LLC as collateral (w/ a UCC filing w/ the state showing this)

The difference is they are stuck with a certain asset as we are seeing.

On a larger and more complicated claim is when a public adjuster working for you makes the biggest difference.  

During the "fix up" process, you would use a different kind of loan that will end up converting to a DSCR loan once you have tenants living in the unit(s).So, I would need to use maybe a construction loan for the renovations and then convert it to a DSCR loan?

You want to be understanding and not "kick them out", but at the same time let them know you operate differently than the previous owner and if they would prefer not to operate that way that's a decision they can make.

Might just be time to sell it all to get in a better position and take what we learned along the way to do things differently next time.

Depending on what you choose, you may run into different seasoning requirements with a variety of lenders.

If you’re looking for ways to make the numbers work, sometimes that means evaluating different markets, financing options, or property management strategies that help mitigate risks like vacancies and maintenance surprises.You’re not alone in feeling like 2025 could go in multiple directions, but one thing remains true—real estate continues to be one of the strongest vehicles for long-term wealth when approached the right way.