I know it likely lowers the profit margins.

The rents were at $1000 a door with a potential to increase up to $1250 after some small TLC renovations.When you factor in the price point, lower taxes and lower insurance you have yourself a sure fire cash flow deal.

Hi Vida,Based on your goals and budget, here are some suggestions for building a small home with a business space in the Atlanta, South Carolina, or North Carolina areas:Building options:Modular homes: These can be a cost-effective option, allowing for faster construction and potentially lower costs compared to traditional building.

For a turnkey property, in an "A" neighborhood, a reasonable cash-on-cash return might range between 5-8%, since these areas tend to be more stable but with lower returns.

Avon, CT is a hot market, with multiple offers being received the weekend of the open house, which is scheduled one week after listing.My offer of $725,000 was $20,000 lower than the highest bid, but was accepted without counter because it was not contingent on financing, while the highest offer at $745,000, while the buyer had pre approval financing, was subject to financing.

Typically, you want to refinance to take cash out or lower your rate by 1.00%. 

Rate will be lower than hard money, lower fees, and you won't have to deal with draws/draw fees. 

If I were you, I would be firm with needing rent more timely, I would still contact the male because she can't kick him off the lease, and I would have a conversation with her along the lines of "this is clearly not what either of us signed up for, is clearly not working, and what can we do to get you to a lower cost living situation as soon as possible?" 

The rates do tend to be a few basis points higher but are often lower than conventional. 

Regarding risk my perspective is that it is much lower than typical common equity deals in that there is a 25% cushion re valuation drop before the pref equity holders would be impacted.