A few reasons to replace would be tenant would be paying for heat, lower maintenance costs long term, and no risk of water damage when pipes give out.Good callouts on ceiling but luckily, i dont have any popcorn texturing, thank goodness.

Rotting window frames, unsafe electrical issues, a tub and sink that didn’t drain properly, a promised dishwasher that turned out to be broken and unusable, a driveway with tons of pot holes so deep that they could have easily damaged cars, and much, much more.

Trying to avoid the occupant from potentially damaging or trashing the place just to get even .   

No credit to damage...or to save.

Lastly, this loan would need to be heavily dependent on the actual property instead of my tax returns as I just quit my job a few months back to go full-time into Real Estate.Hey Wil,A lot of information to sift through, but honestly I think your toughest element is the 'at or around 8%' right now.

The security deposit is for damages , tell them no and start the eviction process

I wasn’t picking on the way you said it.Would it shock you that there are attorneys out there now who specialize in going after private lenders, claiming their intended business-purpose loans are really for a consumer purpose and subject to all legal penalties, damages, and consequences?

To name a few HVAC for unit 1 is 20 years old and could not fully inspect the heat, the pipe to the sewer has completely dropped and is not connected, in basement the window header, subflooring and joists are damaged from termite activity, and their needs to be some tuckpointing and masonry work done for the exterior brick. 

I'd rather have 3 busted potable water lines to one damaged yard sewer line any day of the week. 

It can also capture damage to the property for which the tenant will be responsible so they don't claim it was in that condition when they moved in.