My wife and I are MTR owners and operators that really only use MTR arbitrage when we are at capacity in the units we own, and we have potential residents who would otherwise be forced to stay at extended care motels or similar.

My worry is that while I am clear on the risks (extended timeline to get a tenant in, and expensive buildout) that I am not being nearly conservative enough - do I risk this thing sitting empty for a year, or years, and finally renting well below my implied rate? 

In the H.R. 3936, Built in America Act, it was proposed to extend the 100% bonus depreciation until January 1, 2027.

(A partnership tax return is due March 15th, so in this instance, the partnership return will need to be extended).2.

@Stephen Hood your idea is solid and shows good potential, but here are a few things to consider:Private Lender Terms: Ensure the lender agrees to the 1% origination fee and $2K monthly payments—some may require a higher interest rate or balloon payment at the end.Timeline for Sale: Factor in potential delays with selling your current property or completing renovations on the new one, as these could impact your refinance timeline.Refinance Feasibility: Confirm with lenders that refinancing at $500K is realistic, especially after recent rate increases and appraisal expectations.Exit Plan: Have a backup plan in case the market shifts or repairs take longer than expected, such as extending the private loan or bridging with a HELOC.If you can lock in favorable private loan terms and stay realistic about costs and timelines, this could work well.

One mistake could extend the tenant's stay for months without any income, not to mention the stress it could cause.

VanGundy some room and board over an extended period of time at a state or federal long-term lodging facility, if you get my drift.

FHA is still pushing Covid workouts actually, and currently have extended them through April 2025.

And I may just try to extend the building.

Is it a firm 6 months or is it likely to be extended.