In the situation you describe you'll have a much great gain than $300K because you'll have 18 years of depreciation recapture to deal with. 

Hi everyone, I’m looking for advice from anyone who’s faced a similar situation or has experience in this field.

Any insights from your experience, whether positive or negative, would be greatly appreciated.The attached link explains the current situation with the Detroit Housing Commission (DHC), highlighting that they are severely understaffed and have limited communication with both tenants and landlords.

We are having a hard time coming to a consensus of how to identify, underwrite, and basically take the jump. ( we don't want to screw it up lol) I've searched this topic on the forums but figured someone could give some insights given our situation.

Hey Trevor,Man, this situation sounds incredibly frustrating, especially since you’ve clearly done your due diligence on this property.

I would also recommend a 6 month lease so you are not running into this same situation year after year.

With that said, here are some questions I would ask myself about the situation: Historically, have the students paid enough in the 9 months to cover all the expenses associated with these properties?

Private inspections are generally not mandatory and a good agent could review each situation with you.

There is a lawsuit against them as a number of people were in the same situation. 

You may be able to explain the situation and avoid making alterations to your LLC.