Notably, there is often an unfortunate cycle where: (1) current ownership has financial struggles; (2) this requires the current ownership to fire sell or declare bankruptcy; (3) the development suffers as a result; (4) new ownership comes in and tries to fix it; and (5) the cycle repeats.

However, you have to take in consideration the amount that would cost you to use that money plus the new loan on the multifamily.

Quote from @Jim Reynante: After owning properties C/D neighborhoods with high crime statistics, I have experienced all of the things that go along with it: 1) High turnover rate; 2) Tenants that don't care for the property; 3) Little/No appreciation in home value; and 4) High Crime Rate (burglary, vandalism).I am pretty tired of fixing broken windows, fixing broken doors/locks, and painting over graffiti.

Investment Info:Single-family residence fix & flip investment.

@Cheri Banet, the amount you owe has nothing to do with the taxes you will pay. 

Additionally, what’s a realistic amount of capital needed to get started?

Baselane is now trying to collect the refunded amount from you?

You're now the owner of the property, so the responsibility of fixing things is on you.

Welcome to the community and be ready for a huge amount of information at your finger tips.

If we were to split like this on our current development, our engineers would collect 25 to 35 times as much as we paid them on a straight up fixed cost contract.