On an 8 plex, there isn't much meat on the bones for the amount of work needed for Management, but when you factor in an additional 24 units, that starts to benefit the PM, so there is more room to negotiate.Initially, the cost of PM outweighs your returns. 

., investing $130K capital), how much am I benefitting from the current $45K of equity.

If you are originating the CFPB rules are the same for a land contract or mortgage, so I don't see any benefit to creating a land contract.

Are there any strategies I could use to still claim the depreciation, or any way that the transaction could be structured such that I don't lose on that tax benefit?

@Cj Powderhorn many investors really don't pay attention to market trends:(Nationally, rRents are flatlining at best in many areas, trending down in others.Of course, there are pockets out there that are exceptions.Days On Market (DOM) are up over 37% in the last 2 years and are expected to keep increasing for the near future.So, many investors need to adjust their market expectations, but are lagging in doing so.Regarding the RentReady time, your PMC should have been updating you throughout and explaining cost overruns.Recommend NOT just terminating them, but asking for a call with a manager to discuss your concerns.

So for high season, I am always priced higher than my competition and wait closer to season to adjust if I'm not getting bookings.

If you feel that this is something that will benefit you in the long run then, why not.

In most municipalities approvals have a few year shelf life and in the event new regulations or new zoning bills are passed you could lose the benefit of the in place zoning/development procedures.

This article outlines the benefits of alternative financing to support struggling but fundamentally sound projects and discusses the current market conditions and trends in mezzanine and preferred equity investments.Market ContextIn July 2024, the distress rate for multifamily properties securitized with CMBS financing rose by 100 basis points to 8.4%, continuing a trend of increased distress across the sector.

I think it wouldn't hurt if you were to reach out to an insurance adjuster that works on behalf of the homeowner.