It goes back to their appetite, prior losses/wins on similar projects, and overall asset size.

My risk appetite considers that if half of my tenants can't pay rent or I have 50% vacancy, my expenses and debt service will be covered by the other half.

If a note isn't a fit for those buyers, I reach out to others who might have an appetite for that specific asset.

While it's doing ok in aggregate, due to various reasons, including many covid-related move-outs and subsequent renovations and other issues, I've largely lost my appetite for what I would consider "direct ownership".

I think it all depends on your appetite for risk.

@patrickDepending on your appetite for risk, you could hold onto the property and list it at a retail price.

In Arlington TX we have to 1) install fire suppressant systems in each unit (attic suppressant systems in attics), 2) you will also need a "firewall", we use a 1/2 DensGlass application, 3) fire rated decking within four foot of "firewalls", 4)and non-vented soffit within four foot "firewalls."

For me it is largely dependent upon the investor's risk appetite and investment strategy.  

Every property is unique and a lot of it comes down to management, amnesties etc. our risk appetite was that we didn’t want to take a chance as the differential between $80k and $50k is huge enough to not ignore  

We offer 8% preferred return but some other general partner investors may offer more or less return depending on your risk appetite.