Renters, ESPECIALLY those who know they are only looking to rent for a finite period are generally focused on function over aesthetics.

The fact that IR's accelerated outside of the worst case scenario models, even outside of a 2 SD, didn't have anything to do with it nor the fact that the local jurisdiction decided to extend the covid moratorium for an extra year resulting in no rent collection for a large portion of the MF property, was certainly factors not considered when applying basic math to the forecasting. 

THAT is awesome diversification, and diversification (to me) is more important than the extra money that active MF investors may or may not make.

Carpet is one thing, but kitchen cabinets and countertops are a whole other level of renos.I also agree with Ed O-why do all of that work for an extra $600 a year? 

Why, because of the extra work on my part to administer the hold backs, draws, inspections, etc.Now I can offer rehab money if they are willing to accept a third-party funds control company.

If it works it would eliminate most appraisal gap concerns and I would earn extra margin on the post-closing repairs.

What if the property does not sell quickly and you are living in the house for an extra 3, 4, 5 or 6 months extra.

Option B allows you to save an extra $12,000 s month (minus maintenance costs) and build equity.

His cost basis at that time plus any extra amount he spent would be his new cost basis.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.