If I were to sell and build the two smaller houses, I could likely fund them enough from my gains on the current rental (and a little out of pocket) so they also cashflow ~$300-400/mo each.So, at the end of the day It’d be a wash or a little loss, cashflow wise, on one house and I’d gain ~$300-400/mo on the other house.

See attached Excel summary sheet.Investment Highlight89% Physically OccupiedSupply Index in a 3-mile radius of 6.8 SF/Capita, 5-mile radius of 7.7 SF/Capita, and 10-mile radius of 8.3 SF/CapitaAdditional Income generated from 4 mobile home lots and 1 mobile home (Not Verified, as thus not included in underwriting assumptions)Key Underwriting AssumptionsDown Payment 25% of Purchase PriceEstimating a CAPEX/Repairs cost of $150,000Estimating Operating Reserves of $10000Stabilized Vacancy and Concessions/loss to lease at 10%Using a cap rate of 7.23%Key Demographic DataTotal Square Footage 21,130 Supply Index: 6.3Population 3,338 1 Yr.

. $500.If there are truly 3 layers of roofing on there, definitely needs to come off at some point because the structure is more than likely not designed for the weight; but for now, just patch and go.

You own the LLC, and just like any other business and the income/loss of that business will factored into your debt to income. 

Plan for licensing and inspection hassles and delays.Be careful how much weight you put into a prop mgt company's casual answers about the market.

As mentioned above, USDA will not make you refinance into a loan if you want to rent out the property, but they do issue some warnings.When a property is no longer occupied by the borrower as their primary residence it will affect their ability to refinance the mortgage with USDA or continue to be eligible for servicing and loss mitigation options.

@Michael Smythe I 100% agree that some tenants play the memory loss game and like to be difficult.

There were damages and loss of rent.One of the local utility companies verified there was no transfer of service.

Cut your losses counter offer and settle unless the amount is absurd.One of my lawsuits ran $150,000 in legal fees because I wouldn't settle for $2,000,000.

That way you don't have to immediately worry about a big loss in cash flow starting in Aug.