Undercharging could mean you end up paying out of pocket or getting a lower-quality clean, which isn’t worth the risk when reviews depend on it.

He seems very passive and does not seem to care about paying rent.

in what I just laid out, you'd make monthly payments to the seller just like you would to a bank for 5 years, and then the remaining principal balance of the loan would be due, at which time presumably you would refinance the house into a commercial mortgage and use the proceeds to pay off the seller. 

Quote from @Jaycee Greene: A few things I noticed, in addition to having the tenant pay the utilities are:1) Incorporate annual increases in rent higher than 2% (in your area, maybe 4%-5%) with a slightly smaller increase in operating expenses (say 2%-3%)2) With a gut rehab, I'm not sure why you need to spend $128/month on cap ex, at least for the first year or 2.3a) An 80% cash out refi is probably going to be hard to get.

zero risk, there is absolutely zero risk when you pay off existing debt :)

I know we can start with DSCR and refinance, but then you're paying closing/origination costs twice.

The fastest legal way is likely to pay them to leave (only pay after they are out and if they left it in good condition). 

Then pay down a few current mortgages that are at 8%.

Now some other investors may believe they can boost your revenue quite a bit but they don't want to pay for that projected boost. 

I only wanted to clarify that almost everyone who mentions their equity means “cash after paying off their loan”, not their gain.