Sharing leases, profit and loss sure but no inspection. 

The last time I stayed in one, I was charged a large cleaning fee and then met with a list of what to clean prior to us leaving.

I had clients in PHX  and Vegas that lost their 4 plex's because they went 100% vacant and stayed that way.. they owned 4 or 5 of them.. it only took about 3 months of negative cash flow and they were done.Max leverage loss tenants  lose property.. that's the formula..  

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.

If they didn’t have replacement cost, what should they do to capture value and get a loss writeoff?

I have very rarely sold a property over the last 35 years and the income properties I hold now cash flow very well with not to much effort involved.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

Let the tenant vacate, and you have one month to find a replacement before you incur any losses.

The resident pays the second month on time and then, and only then, do they get the concession.If the market is soft, and we are having trouble renting, before we consider concessions, we look at the product, the marketing, and lastly the price.

I just went through this last year, but after 20 years.