We also received a $2400 security deposit.

Purchase price: $172,000 Cash invested: $43,000 We purchased this rehabbed home and added a privacy fence, removed overhanging trees, finished the countertops, built a firepit, security system, camera's, fixed the sidewalk and turned it into an airbnb.

Hey John, if your priority is security paying off the mortgage in 5-6 years would give you a solid $4K/month net.Alternatively, you could use the HELOC to acquire a few rentals, likely in out of state cash flow markets with strong price to rent ratio.

I was thinking of giving him 3 options.Option 1: He switches to a month to month lease changing to a weekly rent rather than monthly, the new lease will have different rules (ex. such as agreeing to a cleaning schedule and a liter schedule or trash needs to be picked up and placed in a trash can every 12 hours, human waste can not be stored in containers)Option 2: He moves out at the end of March, I keep the security deposit as rent and he does not have to pay February's rent and late fees.Option 3: I'll give him $400 to move out 3 days after we have this discussion.Thank you for any suggestions, I would like to handle this delicately as I don't want a squatter living with me.

Inspect appliances for age and condition,and look over the flooring for any damage.For tenant considerations, evaluate the unit layout for functionality and storage, and check for safety features like smoke detectors and secure locks.

Hello Vincent and congratulations on securing your license!

For value-add investments, securing the right type of financing that accounts for the property’s potential appreciation is key.

If I could re-frame, and put myself in your shoes, I would look for a money partner to help secure rehab properties. 

After evaluating the numbers, we negotiated a purchase price of $45,000, ensuring enough margin to cover renovations and still secure a solid profit.

Apparently investors were made aware of what the investment was, and the “security” behind the “notes”.