.- $150k worth of 5/7-yr property which is appliances, cabinetry, carpets etc.This is pretty typical for a commercial property cost segregation, and I see nothing wrong with it.The problem is in the line above that, called "Selling price."

Now if rents can go to 1,100, different story.Value is based on Net Operating Income, and lending is based on Debt Service Coverage Ratio.Gino

Quote from @Tessa Booth:I try to get the appliances for some active flips or rentals during the sales..

I would check with a few different groups to make sure that they can operate in Detroit, and also to make sure that they will lend to the property in question based on the value.

There are a few DSCR lenders that will allow you to operate a rent by the room strategy as long as the strategy makes sense, and no one related to you is one of the tenants.

I'm an experienced workforce housing owner and operator.  

Or ask the third owner if they would also consider selling, so the whole property is sold.Whether a partnership or LLC, follow the Operating agreement. 

Focusing on the foundational basics and your operations is more important long term.   

Banks aren't really in the business of lending to real estate investors anyway...they focus primarily on "operating entities", but they can be done.

I know if we operated short term rentals I would need additional VAs plus it would be more headache for the team.