What's more, the PM should have gone over when the unit was vacant to make sure it was secure (and lights and taps were turned off). 

We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.

The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

Glad we're secured, but nothing in rei is passive.

Utilizing my relationship with a great local lender I started the process of getting a secured line of credit set up against the 3 unit so I could pull most of my money back out.

Toward the end before closing, they gave bunch of excuses like security breach in their company, don't like the file and the property.

Start by clearly outlining your renovation goals, and follow up with an in-person or virtual consultation to ensure both you and the contractor understand the vision for the project and expectations.

Thanks for the feedback—it really makes me step back and think about this whole situation.To answer your question about the hard money loan: I went that route because I needed to close quickly, and hard money was the fastest way to secure the deal.

Our goal is to establish a structure where the property owner can secure financing based on the long-term lease with the operational company.Any advice or insights from those who have navigated similar situations would be greatly appreciated!

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.