Were you successful in setting up this structure and keeping the loan without triggering a due on sale clause?

Nobody can safely and legitimately sell tradelines better and quicker than these guys, nobody pays more to do it, and nobody has a 100% commission referral program for each card uploaded by any/all new sellers you refer - without limit.I'm extremely experienced in this and although I've been through a couple growing pains with GFS they've ironed out nearly every issue and went fully transparent with their payment schedule and their system to prove that they will not manipulate pricing based on individual customers.

This is because collecting rent is often seen as passive income, and the state may not consider this "doing business" that would trigger the registration requirement.However, states like California or New York may have specific rules, so it's wise to check state-specific requirements.Active Income (e.g., House Flipping):Active Business Operations: If you are engaging in activities like house flipping, property development, or property management, this would likely be considered active business operations.

That is extreme.

Tenanted properties are extremely challenging to sell and the recent change in notice period has made that worse in BC.You are in a tough spot either way, only you know your financial situation and your numbers.

And the price to enter is extremely low compared to other markets in the U.S

Education is extremely important. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

Before pulling the trigger on this, read up on prohibited transactions.

Overall we have vastly more “good” tenants, and the law allows you to get rid of the bad tenants and maintain a desirable place to live for the good tenants who you want to keep.High-maintenance <=> High-Return: Those prior two points drive what I meant when I said the cash flows and NOI should be about double what they are on a “vanilla” MF (multi-family) purchase at the same price point, but it can be a high-maintenance proposition to manage the screening on the front end, the day-to-day management issues, the more frequent turnover and vacancies, and the frequency of needed court filings to get the keys back from a tenant when somebody is not being a good neighbor to your other tenants in the lodging house.Bottom line: We think we were right on point five years ago when we identified that SROs fill a critical niche that is in extremely high demand.