@Stephen Hood your idea is solid and shows good potential, but here are a few things to consider:Private Lender Terms: Ensure the lender agrees to the 1% origination fee and $2K monthly payments—some may require a higher interest rate or balloon payment at the end.Timeline for Sale: Factor in potential delays with selling your current property or completing renovations on the new one, as these could impact your refinance timeline.Refinance Feasibility: Confirm with lenders that refinancing at $500K is realistic, especially after recent rate increases and appraisal expectations.Exit Plan: Have a backup plan in case the market shifts or repairs take longer than expected, such as extending the private loan or bridging with a HELOC.If you can lock in favorable private loan terms and stay realistic about costs and timelines, this could work well.

The CapEx repairs and/or improvements that are made are done by licensed subs so that's not really an issue.

The landlord could offer to mow the lawn and shovel the walk, while making the tenant responsible for repairing or replacing the washing machine.Landlords and tenants need to confirm what is required within their written agreement.

Additionally I spent $35,000 on property taxes, $17,000 on insurance, $35,000 maintenance and repairs.  

Quote from @David Griffin: Quote from @Corby Goade: Why are you asking them for permission to perform repairs on your property? 

Sparing the fringe cases, most of these properties are literally over 100 years old and setting aside the 10% i mentioned above for repairs has worked well for clients.If you are dealing with a property that is 40 years old, that's pretty much a new build in my book haha.

@Vito DiIennaWhile I have not had to get a Letter of No Objection myself, if I had to do it, I would go right the the DOB, go into the Office that you can get an official Cert of Occupancy and ask them what is the procedure to get the letter.Normally, you will need to provide evidence.

. - The FHA 203(k) loan is a great way to buy a MFR as it allows repairs to be included in the purchase mortgage.

The experience led me to study law/court procedures, and understand what lawyers actually do. 

Right now, if it's just for income, you need to dig deeper and understand what you are getting yourself into for that income in terms of being a landlord and repairs.