Originally posted by @Crystal Smith:Originally posted by @John Boon:I'm a Canadian investor investing long distance in a few cities in the US.

The law is crystal clear on that.Of course, the lawyers for rehabbers will tell you that what their clients do is legal because they are closing on the property, fixing it and re-selling it. 

One lesson we learned is when relying on a handyman to perform repairs and work on units as needed to have the process for work requests outlines crystal clear and outline what work would be covered by the landlord or tenant. 

ARVs are simply best guesses in many cases albeit it an informed guess as no one has a perfect crystal ball.

That, combined with the fact that you have a warning from an inspector that the deck is in poor condition and a quote from a contractor for several thousand dollars seems to make the decision crystal clear.

@Crystal Thomas hi Crystal, have you explored any other methods other than a traditional bank mortgage?

Quote from @Crystal Smith: Quote from @Nash Mittelman: BP! 

No one has a crystal ball, but San Diego rent appreciation has an outstanding record as far out pacing inflation.As indicated, I know you know this but your response does not indicate why a person would choose the negative initial cash flow; historically San Diego has produced outstanding return for buy n hold RE even though historically the initial cash flow has been poor when compared to other locales and is currently real poor (SFR are currently cash flow negative if purchased at retail).

You can have cashflow properties AND properties you expect to appreciate.None of us have crystal balls, and as an investor, the only way to get outsized returns is to make a bet that is more contrarian than generally accepted knowledge.

The idea is crystal clear that when you give back their money early, you no longer owe the scheduled interest, so you eliminated it completely.