So if we underperform the pro forma and we end up losing up to $100k on the deal, he would share in that $50k loss and I would eat $50k of the loss.Is that what you mean?

Hope things improve moving forward for you and in the grand scheme of things, $2600 loss I would just chalk up to a lessons learned and one you can continue to teach others about in the future.

Or should we accept the potential loss on the second room if it remains unrented?

I have some rentals and have more depreciation than what they rent for so if I was able to classify the new construction as passive income, I could then use the "losses" from my other passive investments to help offset the income.

If the builder miscalculated or overlooked on certain items, now they are making very little/nothing/lose money, either they will honor their word and still finish the house for you at a loss, or they just stop showing up to your job.

Should get appraised this week but trying to figure out how much they’re going to list and if they’re mostly trying to recover loss from the foreclosure

My original plan was to rent out the space to Section 8 tenants, but from my experience so far, dealing with Baltimore City housing and inspections can be a serious pill.

Sidebar, you usually don't have a Social Security savings with typical rental losses.

I need some advice on the following situation.I am sorry for asking such a basic question, but unfortunately, I am still new to this and never dealt with this type of scenario before.I have a single family home that is part of an HOA.My main goal is to protect the asset and avoid any potential financial loss as much as possible.The current lease agreement states that the tenants are responsible for mowing the grass.They are also responsible for paying any HOA fines, etcUnfortunately after multiple attempts to get through to them to cut the grass, the grass was never cut and the yard is getting worst and worst.They also refuse to turn on the sprinkler system which is causing the grass to slowly die.

In other words if they move out, it would take you 1-2 years to recoup the vacancy loss with a higher rent.