The tenant is going to leave no matter what you say, so you should figure out how to let them go while ensuring there's no loss of income.I suggest you remind the tenant they are contractually obligated to pay rent and other costs until a new tenant is found.

It’s a good idea to consult a tax advisor to ensure everything is structured correctly.

I’m fully prepared that there may be unforeseen costs, but I can’t even estimate properly for your standard cosmetic rehab… have you walked through the property?

How long a stretch does it run to provide proper slope to drain the water effectively?

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:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Pro: In a conventional banking system, you have to trust people to handle your money properly along the way.

If you purchase a newer property that has been recently and properly renovated, you may consider using a lower percentage.The biggest impact on your cash flow will come from the property’s location.

The expected returns are a mix of cash flow and appreciation, ensuring short-term stability and long-term wealth building.Good luck!

They don't build a proper reserve, failing to account for turnover costs, vacancies, capex, etc.