This honestly isn't terrible for being out-of-state on your first reno, but expected.

I have done a formal inspection with the lease but I give the tenant a checklist to fill out with the least when they move in so they can document anything that is broken or needs repair.

But each area is different on what to expect with tenants. 

Wasn’t looking for any cash back in this market but definitely wasn’t expecting 23k to refinance these two deals. 

Maybe I do 2 months, and then have the 3rd month broken up over a period of time. 

This may be important to you so your expectations are met.

This way, it saves time for everyone and keeps expectations clear.That said, I understand the frustration others are expressing, especially around proof-of-funds requirements for more conventionally priced properties—those under $750K, for instance.

I don't have any of their financials yet but expect that they ran solidly for years with a knock from covid.

@Beruk LessaneworkRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

House hacking with friends can be a great way to share both the benefits and risks, but you definitely want to set the right expectations from the start.The key to making this work is transparency.