Here’s a breakdown of the pros and cons of each approach based on my experience:Tenant Swapping:Pros:Tenant Retention: Keeps the property occupied, which helps avoid vacancy periods.Minimizes Turnover Costs: No need for cleaning, marketing, or re-screening tenants if the new person is already known.Flexibility for Tenants: Can be seen as a more tenant-friendly approach, allowing them to find a replacement without facing penalties.Cons:Risk of Unknown Tenants: The new tenant might not be as reliable as the original one, leading to potential issues down the line.Lease Violations or Delays: If the new tenant doesn’t meet the lease requirements or fails to sign a new agreement, this can lead to complications.Operational Complexity: Keeping track of the lease terms, managing paperwork, and ensuring proper screening for new tenants can increase administrative work.Notice for All (One Notice to Vacate for Everyone):Pros:Clear Expectations: Everyone knows what’s expected, and there are no surprises with last-minute tenant changes.Consistency: Easier to manage leases and tenant turnover with a straightforward system.Quality Control: You can screen all tenants that are moving in, ensuring the new occupant meets your standards.Cons:Longer Vacancy Periods: The property may stay vacant for longer, especially if finding a replacement tenant takes time.Tenant Frustration: Current tenants may not be happy with the requirement to vacate, even if they want to stay.Marketing and Re-screening Costs: You’ll have to go through the process of finding and screening new tenants, potentially leading to increased costs and downtime.I’d love to hear what others are doing!

Are there any questions you'd suggest asking to better understand this loan structure and its potential limitations?

With the potential for construction delays, increased renovation costs, rising interest rates on the HELOC and final refinance on the DSCR loan, being 100% leveraged in a deal feels risky.Most of the deals I have been 100% financed in have required me to dump a lot of cash into them consistently because there is no margin between debt, cost, and revenue. 

600+ credit score; income validation; we have potential tenants meet the existing tenants to make sure there is a good fit. 

Thanks for sharing your thoughts.Are there any pockets in GTA or Niagara region where you are seeing value with high potential for long term appreciation? 

TIC offers lower entry costs and flexibility but comes with shared risks and complexities.

Too far above risk-free HYSA or money market yields. 

@Alex Mull as some with experience in both turnkey and all-in active investing, I can tell you the biggest advantage is saving, time, hassle, and some full-service turnkey companies mitigate your risk by doing the upfront renovations and placing qualified residents while the company still owns the house.

Duplexes cash flow better, have less risk, AND EASIER TO MANAGE compared to a SFH.  

However, I had to subordinate the sellers note to 2nd position (hint: set up that language in advance to streamline the process, if that's the direction you're going to go).Since the ARV was high enough, and the potential income would support the mortgage and expenses, it all worked out.