I imagine a lot of the reasons will overlap with the previous topic.  

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

WHAT IS A COST SEGREGATION STUDY?

Quote from @Raymond Kalonji: In your opinion, what would be a reasonable minimum credit score?

For these ultra exclusive co ops the fact that the tenants can turn down anyone for any reason is a big plus. 

It is not uncommon - main reason we see right now is over inflated original ARVs and now borrowers cannot sell and pay off the lender. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Consult you insurance broker for specifics but I found this policy to be very protective and reasonably priced.With regards to an umbrella policy they are typically good to have.  

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

In my mind, the reason for doing this would be to have two engaged platforms versus one dominant one.