I appreciate the input and with think through this decision.

When a Class A apartment can be had for the same price as a Class B/C renovated unit, the B/C operator drops prices, and so on.But, in terms of making an investment decision, I think it is short sighted to rely purely on full market average data.  

You can make a real case for either decision, so - and I can't believe I'm saying this - do what feels good.

It also sounds like they are unsure about renewing the lease so I would ask them when they will make a decision on if they want to renew the lease or not.

First, conducting thorough research and due diligence before making any investment decisions is crucial.

This is the emotional journey I went through and the key business decisions I made along the way.

Hey Patrick - we are targeting more sophisticated investors who will appreciate our approach to help them drive NOI margin and make informed buy/sell decisions.  

Just explain you won't pay dual agency and stick to your decision. 

If they don't want to stay, they must give notice in writing and be out within 30 days.Give them a deadline to make the decision (one week is sufficient).

Don't let taxes drive your investment decision.