This scenario is extremely common and while I exaggerated numbers for effect, I have had this conversation with clients and their CPAs and the client is usually surprised when you put the numbers on paper. 

I did speak directly to several long term investors and they thought it was extreme too. 

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.PM us if you’d like to discuss this logical approach in greater detail!

Extremely Grateful!

This is a Maryland Historical Property, zoned for residential high density, with specific limitations on its usage due to its zoning.The property is massive, offering 8,276 square ft of space, including 5,445 square ft of finished area, and it features a substantial driveway.

I understand there’s some nuance state-to-state in terms of deed of trust usage vs. using a mortgage for the second lien position (our investor in this case).So that we can arm ourselves with the most knowledge going into discussions, could anyone advise what the setup process actually looks like here?

Piercing the Corporate Veil is extremely easy here.

Take rent/2 - p&i to get quick (but not extremely accurate) realistic cash flow.  

When I did my early high level due diligence it looked to me like they weren't issuing any new permits, but I would love to be wrong on that.I do know, having just stayed there in an airbnb, that even for existing permits the rules are extremely strict. 

Chicago winters can be harsh, so we're curious if anyone has had a good experience using a heat pump with an ancillary heat strip for those extremely cold days when the heat pump can't keep up.