Depending on what you want to accomplish as far as asset protection or just general business operation.

Ideally, you operate as close to break even (or slightly better) in a market that's strongly appreciating.

@Vitali Ganon we own and operate several MF properties in Jacksonville and we 3rd party manage for other traditional rentals 1-80 units.

We look at a per door expense, and see if the operator is above or below that.

If I go with the 5900 policy I will be operating at a loss and I will be forced to sell the house. 

There will need to be some sort of established history (rental income and operating costs) in order for a lender to calculate the income.  

Institutional private lenders operate on a larger scale with more structure and formality, offering quick and flexible funding but within a regulated framework.

A self analysis of these items should help you decide whether it makes sense to proceed with the improvements or if perhaps you are better suited selling the building as-is and re-invest your capital and time into projects that better align with your core competencies. 

We operate a vacation rental management firm and the % would be on RENTAL REVENUE, not taxes, cleaning fees, pet fees, etc.

I’m expanding my fix & flip operations to Columbus, and I’m looking to build a solid team.