It is very tough to finance these because most properties and borrowers do not qualify for the financing criterias on a competitive CRE loan. 

We are in an expensive market here in Bend, Oregon so its tough to cash flow at all with these higher rates.

I think proving the concept with your own capital is extremely powerful.

Hi @Belinda Stoner, tough situation.

In the lease agreement, I would also add a clause that any "call outs" will require the tenant to pay for the repair/fix (unless they or handyman can conclusively prove that the landlord should pay for whatever is broken or is in need of being fixed).

I 100% approach everything from a business owner perspective because I (and several other tax pro's) started a business with headaches, cash problems, employees, revenue searches, tough decisions, etc.Then again, I know what you were saying Scott... and I didn't mean to take things too literally.

I'd imagine this falls into the "normal wear and tear" category but I just don't know how you measure or prove it and how much tangible evidence I need to have ready showing that I've warned them repeatedly.  

You might have to take them to court to prove it wrong. 

Prove that he doesn't.

Your area is the tough part, but if he has the experience and you have minimal risk, it' great to just ride along and learn.