You get to charge the one tenant above-market rent (in exchange for them being allowed to sublet), the lender gets the one single lease that they know how to understand, everyone wins.

Additionally, talking to local residents and checking crime statistics for precise locations within the zip code can provide more detailed insights.If you have any other questions or just want to discuss further please feel free to message me.

You want to keep paying cheap rent but get an A-class rental in exchange.

Crystal mentioned a Structured Installment Sale may be a good soution along with possibily a 1031 Exchange.

As part of that exchange they will be taking $500K in cash "boot". 

The 100 year old C/D 2-flats are dreadful if you have to pay contractors, or frankly even handymen (unless you know enough to give precise direction).

You also should ask them if its possible to do with a reverse 1031 exchange.

If the project is co-owned in a limited partnership with them with them as the active partner as "developer" and you as a limited partner having no active role in the actual development process, this would be treated as capital gains income and you should absolutely use a 1031 Exchange to avoid these taxes.

This is precisely the kind of answer I was hoping for.

.- 1031 Exchange: Utilize a 1031 exchange to defer capital gains taxes when selling properties, allowing you to reinvest the full amount into new investments.9.