If the HVAC was only 3-5 years old, I probably wouldn't think it was going out and maybe not have as much cash saved for it, but if it was 20-25 years old I would think it will die soon I better be prepared.You just need to take a look at your properties, understand the risk profile of each in terms of when certain CapEx items might need replacing, and decide if that is the risk profile you are comfortable with.

The total cost of the project including improvements, soft costs and carrying costs from acquisition to stabilization will be close  to $2.65M and the equity requirement using the alt. lender was $480,000 vs. the traditional bank which would have been $800,000.

We include the cost of all the smart tech we want installed that the homeowner keeps, safety items we require in each property, and the items/signs we use to "brand" the home to our company, as well as our time setting up the listings, pricing, guidebooks, auto messaging, cleaning up the supply closets, kitchens, etc.

I hope the first lender can will agree to refinance the loan and I will carry the loan and pay monthly. 

What are the logistics for carrying out a 1031 exchange?

Russell I had my first contract come in on one of my new builds and the commission was simply one of the line items in the addendum.. it became a negotiating point and thats what I did as the owner/seller I did my counter and part of it was a commission adjustment to the amount the agent put in the offer..

The only items to really worry about are the slightly higher fees and PPP periods on the loan. 

To offset the build cost you need more units to carry the lower margins initially. 

It sounds like the ONLY benefit in this deal is the 0% carry-back and you are trading that for a reduced rental rate renting the property back to the family member.

Manager retorts that if it’s a fair price Graybeard won’t mind itemizing the bill.