Huge counterparty risk, I am just working through a scenario where a correspondent HML in the midwest got defrauded from bad diligence and their funding partner is having to clean things up.

Where are you generating leads and for what end? 

If the unit is empty, change the locks, clean it, and get it rented.

It'll be up to the next generation to figure out if they want to build an empire or not. 

Are you not charging the guests a cleaning fee?

I have grown insanely skeptical of BP over the last 5 years, yet somehow I am trying the lead generation for both property management and now as a featured agent.

With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy.

UBIT is generated two ways.

One that I'm getting close (hopefully) to the end of, was a flip that was a public nuisance property with two lots on either side full of junk (like 10 dumpsters worth..)There was great opportunity with the house, but we bought the other lots as well and cleaned them up (as no one would ever buy the house with those lots filled with junk). 

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.