I have used ALE successfully but 4X rent is not what we got we got 2X there is a limit in the insurance polices as to what the insurance will pay but its a decent move at least it was for us

It was a value add and we would potentially be able to make money in a flip How did you find this deal and how did you negotiate it?

I was able to negotiate about 10% discount that was purely circumstantial, I'll let time do the appreciating passively instead of running a 6 months construction project with holding cost.

Here’s the bottom line:  Long term success as a real estate investor or real estate business owner requires knowledge of (1) real estate principles (2) real estate finance and (3) real estate law.  

How did you find this deal and how did you negotiate it?

Success depends on finding properties in less restrictive areas with strong year-round demand and aligning your strategy with local rules.This post does not create a CPA-Client relationship.

I can't imagine the logic of sitting there and reject it all when they have been doing what I want to successfully for years. 

After a few candid conversations, they realized they could negotiate slightly higher rents by offering small improvments..things like better loading dock access or upgrading the security features..turning a so-so cash flow into something much healthier.When you break down your family friend’s situation, it might help to consider these angles:Selling and redeploying capitla could open up opportunities in markets where cash flow is a bit juicier.

Working with a CPA can help you navigate tax implications, and staying focused on long-term planning will set you up for success.

If the taxes are killing your cash flow, you'll need to either negotiate a lower purchase price to offset the tax burden or budget for some property improvements that could increase rental income and help balance things out.