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?

Some examples of properties with high asset reclassification include medical clinics and hospitals with technical machinery and labs, grocery stores with machinery, shopping centers with rainwater drainage systems and large parking areas, industrial manufacturing facilities with advanced equipment, apartment buildings in suburban areas with swimming pools, golf courses, tennis courts and large parking areas for tenants.Here’s a list of the average amount of assets that can be reclassified into shorter asset life classes based upon the type of property.

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

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

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

You will certainly gets lots of different perspectives from the forums and most likely multiple people will have experienced a similar situation in their investing journey!

--How in the world is anyone being optimistic about this situation?

As soon as interest rates or your personal situation are favorable you can then refinance at any time and eliminate the hard money lender.

I would try to avoid this type of situation again.

I really feel this financing situation is holding me back from going and finding a deal.