Ended up calling the Jersey City Division of Housing Preservation and in essence the entire home has to be in good order even if certain parts aren't accessible to guests.

When I think of the amount of cash flow that I could get from each ATM as compared to the initial bash flow from even a $300k rental, it seems like its a good way to go.

When we say doing the due diligence while choosing the REA, for new investor, it would be believing them whatever they say or promise even if you ask correct questions. 

Still need to screen S8 prospects though.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If the LLC and its income are entirely outside California, it typically does not require registration with the California Secretary of State (SOS) or payment of California Franchise Tax Board (FTB) fees, even if you reside in California.

Though, my main goal is to be break-even or close to it in cash flow once a property manager steps in to take over. 

Also, does the initial draw have to be the full amount like a HELOAN even though the product might say HELOC?

My interest rate and purchase price wouldn’t allow for positive cash flow unless I charged an unreasonable rent—or put about $500K toward the principal, which isn't ideal.I’m a high earner, so I’m weighing my options:Take the loss ($60K-$100K), buy another house, and chalk this up to a hard lesson learned.Refinance, put more money into it, and rent it out long-term—even if it’s not immediately profitable.Invest my money elsewhere and try to make peace with staying here for several years or just move.Would love to hear thoughts from anyone with experience in real estate, financial strategy, or noise mitigation.

But even if you hit a home run and grow 30%, that is $7500.

Without it the lease would remain between the previous owner and the tenant, you would not even be entitled to rent...