Compliance states there is no way to remediate this unless a new file is created. lender credit is 6900 which is the seller concession and no COC can be issued for “incorrect” lender credits.

Thanks so much.By the way, I have not met any investors that come to this issue, but I think there will be.

Also, watch out for any litigation or construction issues that could lead to HOA fee increases down the road.Alternatively, you could consider a good deal on a single-family home or a 2-4 unit property.

As such, getting a Section 8 tenant and subsequent delays has not been an issue. 

Risks include market fluctuations, property damage, tenant issues, and unexpected expenses.

Primary issue I see is being priced too high for the current market by a few hundred dollars. 

Crime and drugs still an issue, but getting quality tenants has not been a challenge... so far so good.

@Tyler Speelman, A 1031 exchange solves the tax issue. 

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

That being said the main issue with leverage is being over leveraged.