You know it’s funny back when I was flipping in dc pre covid, I was always amazed at the prices and in the back of my head was like I cannot believe people are paying 800-1 million to be in a tiny rowhome in a frankly pretty rough area, now of course everyone who didn’t grow up here throught it was just was the way it was, but growing up here I tried to explain to everyone just how bizzare it was that the city was so much more than then the burbs, (from 06 on there were entire areas that went up fourfold, where as the burbs were kind of flat for a decade) I won’t say I saw dc’s crash coming but it seemed so unnatural to me having grown up in the area, I also don’t think we’ve seen close to the bottom as far as urban real estate, as you said you can still trade a house in the city for one in the burbs but really given how urban living is + remote works, cities should be significantly less than an equivalent burb.

Yes, provide as much information to the tenant as possible with a detailed list of all the excess expenses that are associated with the tenants damage to the property.

Your NOI even for single-family properties is flat or falling because of the high supply and continually rising expenses (especially insurance, labor, and interest rates but those seemed to have plateaued).

Here are our concerns;- Some of the floor joists have been exposed to excessive moisture and are rotting away. 

And you're flat wrong about other things. 

When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or refund the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account designated explicitly for future investments.

He asked the right questions and I could tell he was serious, so I decided to team up with him, and we purchased this run down three flat, and gut renovated the bottom unit, while increasing the rent on the top two units.

Flat bonus?

Are you finding enough lenders can give you reasonable GFE without needing to spend an excessive amount of time on each?   

The 100 year old C/D 2-flats are dreadful if you have to pay contractors, or frankly even handymen (unless you know enough to give precise direction).