Also having a higher proportion of revenue generated through the residential component of the building does make financing easier. (3) The exception to the 80% rule I abide by is when the commercial space is leased to a credit tenant with a proven & sustainable business  or where the space presents the opportunity to attract a neighborhood amenity F&B operator (this is most beneficial in instances where you have a larger localized portfolio where these commercial tenants can positively impact the value of your overall residential portfolio).

After operational expenses, there might be minimal tax.

But like with all laws unless its enforced and has some teeth wholesalers wont give a rip they will just break the law and keep going until they are stopped.I wonder what companies like Great Western are  going to do. they have a big philly operation that deals in the low income areas where a lot of these deals are done. 

A friend of mine is trying to figure out what is a better long term strategy.

I also wouldn't be involved in day-to-day operations onsite.

About a month ago a family member of mine let him know that he was going to sell his dad's house.

After nearly 3 years of operating history, I'm concerned that the properties are not performing well enough to warrant continuation of the venture, and I'm considering selling.

In fact, a common colleague of Chris and mine worked with them for a few years but departed once he learned of the issues outlined above.   

Would obviously have preferred to use a third party but this accomplishes exactly what I need - a birds eye view of the profitability each month without have to re-enter operational and tenant data into my own system when the property manager is already tracking this information. 

Reason I ask is there are companies out there who will tell you that you can get business credit but in order to do so you need to be an operating company not an investment companySo just asking so you potentially could avoid spending good money and time chasing a ghost