.🚨 Red Flag:❌ Selling before violations are cleared – Buyers will demand price reductions or walk away if the property isn’t compliant.Step 6: Refinance or Sell at a Higher Value 💰With all violations cleared and the building fully compliant, you now have several exit strategies:✅ Refinance at a Higher Appraisal – Now that the property meets code, banks will lend at better terms.✅ Sell to Institutional Buyers – Investors avoid buildings with compliance issues, so fixing violations expands the buyer pool.✅ Increase Rents & Stabilize Cash Flow – If units were previously illegal or vacant due to violations, now they can be leased legally.📌 Pro Tip:Properties that were once “unsellable” become prime investment opportunities once violations are cleared.Is Investing in NYC Multifamily Properties with Violations Worth It?

Some investors also use a business line of credit backed by their cash flow, which can help with future deals.If you’re planning to scale, maybe start stacking that cash for the next property or even park some in T-bills for short-term returns.

It's always a bit of a balancing act, but it’s critical to follow the lease terms and local laws.Have you looked into professional cleaners who specialize in post-smoking cleanup?

I am going to keep the LLC regardless because it helps me to stay more organized in terms of bookkeeping, having separate accounts for business expenses etcI am sorry if my explanation is confusing, its all clear as mudThank you to all who take time to respond

How long have you been an Agent, and what seems to be the first investment you would want to tackle and why? 

Balloon terms 3/5/7 years. 

Long story short, in most cases the lender can convert your line on a whim if they really want to, meaning you would lose access to the undrawn funds.

@Scott Trench - have you considered investing in short term rentals, materially participating, and having the average stay be less than 7 days?

The technical term is Sound Transmission Class. 

You can either do this as 2 Schedule E's or one Schedule E: as long as the figures are the same.