I serve on committees when able, and generally be understanding that a program aligned with our federal HUD is going to have it's inefficiencies.

Keep detailed records of payment dates and amounts and consult a tax professional to ensure this strategy aligns with your overall tax planning. 

In my opinion, maintenance markups do not align incentives of the property management company with the owner client.

Lenders typically look for a DSCR of at least 1.25, meaning your monthly rent should cover the loan payment plus 25% more.Seasoning: Some lenders may require a waiting period of 6 months or more before refinancing, so check with your lender to see if this is an issue.If the numbers align, refinancing could allow you to recoup your $136k investment without selling.

Which aligns better with your goals right now?

Unfortunately, this kind of issue seems to happen more often than we’d like, especially with properties that have been operating in a way that doesn’t align with official records.I agree with others that working with a local architect and zoning expert is a great first step to determine if legalizing the property as a triplex is feasible.

Focus on strategies that align with your needs, like turnkey properties, build-to-rent options, or small multifamily buildings, especially if you prefer less hands-on management.

Resort and vacation destinations tend to perform well, but it’s critical to research local laws and trends to ensure the property aligns with your financial goals.What type of investing are you leaning toward?

I believe transparency and integrity are the foundations of any good business, and it's refreshing to see others are aligned with that mindset and practice as well.

Also, exploring alternative lenders could reveal better financing options that align with your goals, so it’s a smart step to consider before committing further with the current lender.